UGRO Capital To Weigh Debt Fundraising Options Including Non-Convertible Debentures

Introduction

UGRO Capital, a technology-driven NBFC focused on MSME financing, is strengthening its capital base through debt fundraising. The board’s approval reflects confidence in the company’s growth trajectory and its commitment to expanding credit access for small businesses.

Debt Fundraising Plan

The company has approved multiple tranches of debt instruments:

Secured NCDs worth ₹300 crore

Subordinated NCDs worth ₹65 crore

Foreign currency bonds worth USD 20 million  

Additionally, the board cleared issuance of NCDs aggregating up to ₹205 crore through private placement. These instruments will carry varied tenures, interest rates, and security structures.

Strategic Significance

Debt fundraising will provide UGRO Capital with long-term capital to scale its MSME lending operations. By diversifying funding sources, the company aims to maintain liquidity, strengthen its balance sheet, and sustain growth momentum in a competitive NBFC sector.

Market Impact

Following the fundraising announcement, UGRO Capital’s shares slipped by nearly 4% on the BSE, reflecting short-term investor caution. However, analysts note that such moves often signal robust fundamentals and a proactive approach to capital management.

Key Highlights

•⁠  ⁠UGRO Capital board approved fundraising via debt instruments

•⁠  ⁠Issuance includes secured and subordinated NCDs, plus foreign currency bonds

•⁠  ⁠Aggregate fundraising up to ₹465 crore and USD 20 million approved

•⁠  ⁠Additional ₹205 crore NCD issuance cleared via private placement

•⁠  ⁠Shares dipped 4% post-announcement, but long-term outlook remains positive

Sources: ScanX News, Angel One, MarketScreener