UGRO Capital , a prominent player in the financial services sector, has made a significant move in the debt market by allotting commercial papers (CPs) worth ₹14.45 crore. This strategic financial decision demonstrates the company's active engagement in short-term borrowing to potentially support its operational needs and growth initiatives.

Key Details of the Commercial Paper Issuance

Significance of the Issuance

The commercial papers issued by UGRO Capital carry a face value of ₹5.00 lakh per security but are priced at ₹4.81 lakh, indicating a discount to face value typical of such short-term debt instruments. This pricing structure allows investors to earn returns through the difference between the purchase price and the redemption value.

With a redemption value set at ₹15.00 crore, the company is effectively borrowing at competitive rates for its short-term financing needs. The 158-day tenure of these CPs provides UGRO Capital with flexibility in managing its cash flows while offering investors a relatively short-term investment opportunity.

Listing and Regulatory Compliance

UGRO Capital has proposed to list these commercial papers, a move that could enhance the liquidity of the instruments for investors. The company's prompt disclosure of this allotment, in line with Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements, underscores its commitment to transparency and regulatory compliance.

The Investment and Borrowing Committee of UGRO Capital's Board of Directors approved this allotment, reflecting the strategic nature of the decision within the company's financial planning framework.

As the financial landscape continues to evolve, UGRO Capital's utilization of commercial papers demonstrates its active approach to capital management and its ability to leverage various financial instruments to support its business objectives.

UGRO Capital , a prominent player in the financial services sector, has made a significant move in the debt market. The company's Investment and Borrowing Committee has approved the issuance of non-convertible debentures (NCDs) worth up to ₹3 billion, with an additional green shoe option of ₹1.5 billion.

Key Details of the NCD Issuance

The NCDs will be issued through a private placement, with the following characteristics:

Series-wise Breakdown

The NCDs will be issued in three different series, each with its own tenure and coupon rate:

Additional Features

• Interest Payment: Monthly
• Redemption: On the date of maturity
• Security: First ranking, exclusive, and continuing charge by way of hypothecation over all loan receivables
• Security Cover: Minimum 1.10 times or 110% of the outstanding NCDs

This strategic move by UGRO Capital is aimed at raising funds without diluting equity. The varying tenures and competitive interest rates of the NCDs could attract a diverse range of investors, potentially providing the company with the capital needed for its growth and operational requirements.