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 has made a significant reversal in its debt market strategy, deciding to re-open the issuance of Non-Convertible Debentures (NCDs) worth ₹100 crores under Series 2. This decision comes just two days after the company had withdrawn the proposed issuance on December 22, 2025.

Recent Developments in NCD Issuance

The company's latest corporate action demonstrates the dynamic nature of capital market decisions. The timeline of recent events shows the company's evolving approach to debt fundraising:

Original NCD Structure and Features

The company's Investment and Borrowing Committee had previously approved a comprehensive NCD structure with attractive features for investors:

Strategic Implications

The re-opening of the NCD issuance indicates UGRO Capital's continued focus on diversifying its funding sources through debt market instruments. The decision to reverse the withdrawal suggests that market conditions or internal strategic considerations have evolved favorably for the issuance.

The NCDs offer several attractive features including a competitive 9.50% annual coupon rate with monthly payments, strong security backing through first-ranking charge on loan receivables, and a relatively short 15-month tenure. The green shoe option provides additional flexibility to raise up to ₹200 crores in total if market demand warrants.

Market and Regulatory Compliance

UGRO Capital has maintained full transparency regarding these developments, promptly informing both BSE Limited and National Stock Exchange through regulatory filings under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also made this information available on its corporate website at www.ugrocapital.com .

This development will be closely watched by investors and market participants as an indicator of the company's capital allocation strategy and market confidence in its debt instruments. The successful placement of these NCDs could provide UGRO Capital with additional resources for expanding its lending activities and supporting business growth in the financial services sector.