Ugro Capital Limited Plans Issuance of Non-Convertible Debentures Up to Rs 500 Million to Strengthen Capital Base and Support Growth

Ugro Capital Limited, a pioneering DataTech NBFC specializing in financing for micro, small, and medium enterprises (MSMEs), has announced its intention to raise funds by issuing Non-Convertible Debentures (NCDs) aggregating up to Rs 500 million (50 crore rupees). This planned capital raise aims to bolster the company’s Tier II capital base and support ongoing business expansion.

 

Key Highlights:

 

The proposed NCD issuance will consist of unsecured, rated, subordinated, redeemable, and taxable debentures, planned for private placement.

 

The board of directors is scheduled to meet on September 17, 2025, to consider and approve this fund-raising proposal, reflecting a strategic effort to reinforce the company’s capital adequacy in line with regulatory norms.

 

Ugro Capital utilizes advanced data analytics and an extensive distribution network to bridge the credit gap for MSMEs across India, delivering customized loans tailored to small businesses.

 

The company reported strong financial performance in Q1 FY26, with a standalone net profit of Rs 34.13 crore (up 12.4% year-on-year) and total income rising 39.9% to Rs 421.83 crore.

 

The proposed NCDs typically carry a tenure around 66 months with a competitive coupon rate offering attractive returns to investors.

 

Previous fund-raising efforts include a Rs 30 crore commercial paper issuance and ongoing capital raising programs such as rights and preferential issues.

 

Strengthening the capital base is critical to supporting scaled lending operations, technology investments, and expansion of branch networks, currently numbering over 300 operational branches in emerging markets.

 

Market Outlook and Strategic Implications:

 

The NCD issuance aligns with Ugro Capital’s vision to establish itself as a leading small business financing institution driven by data and technology. This fresh capital will accelerate loan book growth, enhance risk management, and sustain profitability.

 

Robust financial metrics and diversified capital structure provide confidence to investors and stakeholders about the company’s growth trajectory and resilience amid evolving economic conditions.

 

The increased capital adequacy will also support regulatory compliance and enable Ugro Capital to pursue strategic acquisitions, innovate product offerings, and expand partnerships across fintech ecosystems.

 

In summary, Ugro Capital Limited’s planned Rs 500 million non-convertible debenture issuance represents a strategic financial move to empower MSME lending growth and consolidate its leadership in India’s DataTech lending space.

 

Sources: ScanX Trade, JM Financial Services, Moneycontrol, Elite Wealth, Capital Market (September 2025)