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UGRO Capital’s Bold Move: ₹9,110 Million CCD Issue at ₹185/Share to Power MSME Lending Surge

Updated: June 20, 2025 11:31

Image Source: Moneycontrol
UGRO Capital Ltd, a DataTech-driven NBFC specializing in MSME financing, has announced a major capital infusion plan, securing board approval to raise ₹9.11 billion (₹911 crore) through the issuance of Compulsorily Convertible Debentures (CCDs), each convertible into one equity share at ₹185. This strategic move, part of a broader ₹13.15 billion capital raise including a concurrent ₹4 billion rights issue, is set to significantly boost UGRO’s capital adequacy and fuel its ambitious expansion in India’s underserved MSME sector.
 
Key Highlights:
  • CCD Conversion Price: Each CCD will convert into one equity share at ₹185, a notable reduction from last year’s ₹264 conversion price, making this round more attractive to new and existing investors.
  • Capital Adequacy Boost: The fresh capital is projected to elevate UGRO’s capital adequacy ratio from 19.41% to 29.4%, providing a strong buffer for future growth and lending capacity.
  • Institutional Backing: The preferential allotment has attracted major commitments, including ₹500 crore from Samena Capital, ₹168 crore from Singapore-based Aregence, and ₹150 crore from Danish impact investor IFU. Promoters and employees have also reaffirmed confidence with a ₹34 crore investment.
  • Shareholder Opportunity: The concurrent rights issue at ₹162 per share ensures existing shareholders can maintain their stake, minimizing dilution while supporting UGRO’s growth.
  • Strategic Rationale: Founder and MD Shachindra Nath emphasized that this capital raise will keep UGRO’s growth trajectory “unhindered,” enabling annual AUM additions of ₹3,000 crore and supporting India’s MSME credit needs.
This landmark capital raise positions UGRO Capital for accelerated growth, deeper market penetration, and continued leadership in MSME lending.
 
Sources: Entrepreneur India, Business Standard, The Hindu Business Line

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