UGRO Capital Limited, a non-banking financial company, has announced the allotment of unlisted commercial papers (CPs) worth Rs. 110 crores. The Investment and Borrowing Committee of the company's Board of Directors approved this allotment on November 20, 2025.

Key Details of the Commercial Paper Issuance

Significance of the Issuance

This short-term borrowing through commercial papers indicates UGRO Capital's strategy to manage its working capital needs. The 18-day tenure of these securities suggests that the company is leveraging short-term market instruments for immediate liquidity requirements.

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency ensures that shareholders and potential investors are kept informed about significant financial decisions made by the company.

UGRO Capital has stated that this information will be available on the company's official website, further enhancing transparency and accessibility for stakeholders.

As unlisted securities, these commercial papers will not be traded on stock exchanges. However, the issuance reflects on the company's financial management strategies and its ability to raise short-term funds in the current market conditions.

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 ₹100 crores, with an additional green shoe option of ₹100 crores.

Key Details of the NCD Issuance

The approved issuance includes the following details:

Significant Aspects of the Issuance

1. Flexible Funding: The structure of the issuance, with a base issue and a green shoe option, provides UGRO Capital with flexibility in raising funds based on investor demand.

2. Attractive Interest Rate: The NCDs offer a coupon rate of 9.50% per annum, payable monthly, which may appeal to investors seeking regular income.

3. Strong Security: The debentures are secured by a first-ranking charge on the company's loan receivables, maintaining a security cover of at least 110% of the outstanding NCDs.

4. Short-Term Maturity: With a 15-month tenure, the NCDs offer a relatively short-term investment option for potential investors.

Implications for UGRO Capital

This NCD issuance represents a strategic move for UGRO Capital to diversify its funding sources. By tapping into the debt market, the company aims to raise capital that can potentially be used for expanding its lending activities, refinancing existing debt, or supporting other business operations.

The successful placement of these NCDs could strengthen UGRO Capital's financial position, providing it with additional resources to capitalize on growth opportunities in the financial services sector.

Investors and market observers will likely keep a close eye on the subscription levels of this NCD issuance, as it may serve as an indicator of market confidence in UGRO Capital's business model and growth prospects.

As the financial landscape continues to evolve, UGRO Capital's move to issue NCDs demonstrates its proactive approach to capital management and its commitment to exploring diverse funding avenues to support its business objectives.