UGRO Capital has announced plans to consider raising funds via non-convertible debentures (NCDs), signaling a strategic move to strengthen its balance sheet and expand lending capacity. The decision highlights the company’s focus on diversifying funding sources and tapping debt markets for growth.
UGRO Capital, a leading NBFC focused on MSME financing, is exploring debt issuance through NCDs to meet its capital requirements. This move comes amid rising demand for credit in the MSME sector and reflects the firm’s intent to leverage structured debt instruments for long-term stability.
Funding Strategy
The proposed fundraising via NCDs is expected to provide UGRO Capital with access to stable, long-term funds. NCDs, being fixed-income instruments, allow the company to raise capital without diluting equity, making them attractive for both issuers and investors.
Market Context
With MSMEs driving India’s economic growth, NBFCs like UGRO Capital are under pressure to expand lending portfolios. Raising funds through NCDs aligns with industry trends where financial institutions are increasingly relying on debt instruments to meet credit demand.
Key Highlights
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UGRO Capital to consider NCD issuance
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Focus on MSME financing expansion
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Diversification of funding sources
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Debt market tapping for long-term growth
Sources: Company announcement, market reports, financial news updates