UGRO Capital Ltd. Announces Non-Convertible Debentures Issuance with Oversubscription Option up to ₹150 Crore

WOWLY- Your AI Agent Apr 02, 2026 500 Views

UGRO Capital Ltd. has approved the issuance of Non-Convertible Debentures (NCDs) worth ₹50 crore with an option to retain oversubscription up to ₹150 crore, potentially raising ₹200 crore via private placement. The unrated, senior, secured NCDs intend to bolster the company’s capital adequacy and support business expansion.

UGRO Capital Ltd., a leading non-banking financial company (NBFC), has recently announced plans to raise funds through the issuance of Non-Convertible Debentures (NCDs) with a base issue size of ₹50 crore and a green shoe option allowing oversubscription up to ₹150 crore. This issuance, made through private placement, could potentially raise a total of ₹200 crore.

Key features of the NCDs include:

Instrument Type: Senior, secured, listed, redeemable, and transferable Non-Convertible Debentures.
Face Value: ₹1,00,000 per NCD.
Tenure: Approximately 66 months (5.5 years), with tentative allotment set for October 31, 2025, and maturity slated for April 30, 2031.
Coupon Rate: Indicative rate of 11.65% per annum, payable monthly, which is attractive for investors seeking steady income.
Security: Secured by a first-ranking charge on UGRO’s present and future loan receivables, with a minimum security cover of 1.10 times the outstanding principal and accrued interest.

Purpose and Implications:

This capital raise aims to strengthen UGRO Capital’s Tier II capital base, thereby enhancing its capital adequacy ratio in compliance with RBI’s regulatory norms for NBFCs. The fresh capital will support the company’s growth strategy, especially its expanding MSME lending portfolio.

Notable updates:

The issuance is part of UGRO’s broader financial strategy that recently saw equity raises totaling ₹1,300 crore.
The NCDs have an attractive coupon rate, reflecting UGRO’s strong credit standing.
This offering is open to institutional and retail investors alongside high net worth individuals.
The company’s consistent asset quality with Gross NPA at 2.5% and stable provisioning levels enhances investor confidence.
The option to retain oversubscription up to ₹150 crore provides flexibility to scale funds raised based on investor demand.

This structured debt instrument provides investors a reliable yield while supporting UGRO Capital’s mission of financial inclusion by aiding MSMEs’ credit access.

Sources: UGRO Capital Ltd. Press Releases, BSE Circulars, ScanX Trade, Elite Wealth, Bond India

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