UGRO Capital Ltd has announced plans to consider issuing non-convertible debentures (NCDs) worth up to ₹200 crore, including a ₹100 crore green shoe option, via private placement. The move aims to diversify funding, strengthen its lending operations, and support ongoing business expansion.
UGRO Capital Ltd is taking decisive steps to raise flexible, long-term funds through a fresh NCD issuance. As approved by its Investment and Borrowing Committee, the company will issue listed, rated, senior, secured, transferable, redeemable NCDs aggregating up to ₹100 crore (base issue) and retain oversubscription up to ₹100 crore (green shoe option), with each debenture having a face value of ₹10,000.
With a short 15-month tenure and a competitive coupon rate of 9.50% per annum, payable monthly, the secured NCDs will be backed by a first-ranking charge on loan receivables. The funds raised will be deployed primarily for expanding MSME lending and refinancing existing debt, providing UGRO Capital with additional liquidity to accelerate its growth ambitions.
The company’s capital market activity is closely watched by investors given its proactive approach to diversifying funding avenues and supporting business objectives in a competitive financial landscape. The NCDs will be listed on BSE, ensuring liquidity and transparency for investors.
Key Highlights
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UGRO Capital proposes NCD issuance up to ₹200 crore, including green shoe option
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Listed, rated, senior, secured, redeemable debentures with 15-month tenure
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Attractive coupon rate of 9.50% p.a., paid monthly
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Funds to support MSME lending growth and refinancing
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NCDs to be listed on BSE for investor access and liquidity
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Strategic move to diversify funding sources and support expansion
Source: Business Standard, ScanX Trade, Moneycontrol.