New Delhi, Feb. 23 -- UPL Ltd has announced a massive restructuring exercise aimed at simplifying its complex holding structure. In reaction, the Street dragged down its shares by a whopping 15% on Monday. What explains the tumble?

First, let's evaluate UPL's existing structure and the proposed one. Currently, UPL holds its Indian and global crop protection businesses in separate entities. Other businesses include 70% subsidiary Advanta for seeds, and wholly owned subsidiary Superform Chemistries for specialty chemicals.

UPL now proposes to list an integrated crop chemicals company by merging Indian and global crop chemicals into UPL Global. It will issue one share of UPL Global for one share held in UPL.

The global seeds business, Adv...