InvestorQ : What exactly is the problem with UPL and do you see the correction continuing?
vidhya Laxmi made post

What exactly is the problem with UPL and do you see the correction continuing?

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sarah Leo answered.
2 months ago
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On Thursday, the UPL stock fell by over 12% after a whistleblower insider made serious allegations that promoters of UPL Ltd had siphoned off money from the company. However, at one point, the stock was down nearly 16% and it did show some short covering.

The allegations made by the whistleblower pertained to the rental agreements UPL had entered into with alleged shell companies. These shell companies were apparently owned by employees, which were paid crores in rent. The whistleblower also alleged that these properties were earlier owned by the promoter Jaidev Shroff.

These allegations had first surfaced in the year fiscal year FY2017-18 period. At that time, nothing substantial had come out of the case and the Audit Committee did not find anything wrong. The UPL top management went into damage control mode on Thursday. In a late evening video conference, UPL denied these allegations.

It painted the allegations as an attempt to malign the reputation of the company. Shroff also added that such allegations had appeared in 2017-18 and had also been investigated in detail by the Audit Committee. The committee had then concluded after the investigation that the deals were at arm’s length only. They see limited impact of these allegations.

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