Key Points
- Ugro Capital’s NCD Issuance: Ugro Capital, a leading financial institution, has decided to raise up to Rs 135 crore through non-convertible debentures (NCDs), as approved by its Board of Directors.
- Details of NCDs: The company plans to issue 3,500 Senior, Secured, Rated, Listed, Redeemable, Transferable NCDs, valued at Rs 1 lakh each, totaling Rs 35 crore. Additionally, they have approved issuing 10,000 similar NCDs, with a face value of Rs 1 lakh each, aggregating up to Rs 100 crore, inclusive of a green shoe option of up to 5,000 NCDs worth Rs 50 crore.
- Tentative Allotment Dates: The allotment dates for these NCDs have been tentatively set, with the Rs 35 crore issuance expected to be allotted by July 16, 2024, and the Rs 100 crore issuance, including the green shoe option, scheduled for June 14, 2024.
- Recent Developments: Ugro Capital has also approved the acquisition of MyShubhLife, a financial services platform, for an enterprise value of Rs 45 crore. Additionally, the company has given the nod to raising Rs 1,322 crore through Compulsory Convertible Debentures (CCD) and warrants.
- Strategic Focus: Ugro Capital, known for its focus on lending to micro, small, and medium enterprises (MSMEs), operates as a data tech non-banking financial company (NBFC). The company aims to provide innovative and context-specific credit products to underserved sectors, leveraging technology.
- Vision for Growth: These strategic initiatives underscore Ugro Capital’s commitment to driving positive change in the financial landscape, empowering businesses, and fostering economic resilience.
Ugro Capital, a prominent name in the financial sector, has made headlines with its decision to raise up to Rs 135 crore through non-convertible debentures (NCDs). The move comes as part of the company’s strategic plans for expansion and growth.
In a recent development, the company’s Board of Directors, during a meeting held on May 18, 2024, gave the green light to the issuance of NCDs. Ugro Capital aims to issue up to 3,500 Senior, Secured, Rated, Listed, Redeemable, Transferable NCDs, each valued at Rs 1 lakh, totaling Rs 35 crore. Additionally, they have approved the issuance of up to 10,000 similar NCDs, with a face value of Rs 1 lakh each, aggregating up to Rs 100 crore, inclusive of a green shoe option of up to 5,000 NCDs worth Rs 50 crore. These NCDs will be issued in dematerialized form through private placement.
Investors keen on participating in this private placement should mark their calendars, as tentative allotment dates have been set. The Rs 35 crore NCD issuance is expected to be allotted by July 16, 2024, while the allotment for NCDs worth Rs 100 crore, including the green shoe option, is scheduled for June 14, 2024.
This strategic move by Ugro Capital follows recent acquisitions and capital raises. The company has given the nod to acquire MyShubhLife, a financial services platform, for an enterprise value of Rs 45 crore. Through a combination of 64% equity and 36% cash, Ugro Capital aims to make MyShubhLife its wholly-owned subsidiary.
Monish Anand, Founder and CEO of MyShubhLife, expressed enthusiasm about the acquisition, stating, “Our primary objective is to employ technology as a catalyst for offering contextual and innovative credit products to small-scale shopkeepers and distributors across the nation.”
Moreover, Ugro Capital has approved raising Rs 1,322 crore through Compulsory Convertible Debentures (CCD) and warrants, showcasing its commitment to growth and innovation. This capital raise includes a substantial commitment from Samena Capital, an existing private equity investor.
Ugro Capital, known for its focus on lending to micro, small, and medium enterprises (MSMEs), operates as a data tech non-banking financial company (NBFC). Leveraging technology, the company aims to provide innovative and context-specific credit products to underserved sectors, contributing to financial inclusion and economic growth.
As Ugro Capital sets its sights on further expansion and development, these strategic initiatives underscore its commitment to driving positive change in the financial landscape, empowering businesses, and fostering economic resilience.
