UPL Demerger Structure May Cap Public Shareholder Value: Kotak Institutional

• Kotak Institutional Equities analyst Abhijit Akella highlights investor concerns over UPL's demerger structure.
• The holding company structure in the crop protection demerger means public shareholders won't directly own the new listed entity.
• Such structures typically attract valuation discounts, ranging from 20-80%, creating uncertainty for shareholders.
• UPL management is aware of concerns, but the current structure aims to provide an exit for private equity investors.
• Kotak Institutional maintains a 'sell' rating; a more informed assessment awaits valuation reports and regulatory disclosures.