UGRO Capital Limited, a prominent financial services company, has made a significant move in the debt market by allotting unlisted Commercial Papers (CPs) worth Rs. 90.00 crore. The company's Investment and Borrowing Committee approved this allotment, which comprises two tranches of Rs. 50.00 crore and Rs. 40.00 crore respectively.

Details of the Allotment

The allotment, which took place on September 30, 2025, includes two distinct tranches of Commercial Papers with varying tenures and redemption dates:

Key Points

• The Commercial Papers are unlisted, indicating they will not be traded on public exchanges.
• Yes Bank Limited, Mumbai, has been appointed as the Issuing and Paying Agent (IPA) for both tranches.
• The issue prices for the CPs are set at Rs. 4,78,069 and Rs. 4,73,079 per unit for the first and second tranches, respectively, reflecting the discounted nature of these instruments.

Implications

This move by UGRO Capital suggests a strategic approach to short-term borrowing. By issuing Commercial Papers, the company can access funds at potentially lower costs compared to traditional bank loans. The staggered redemption dates of the two tranches also indicate a thoughtful approach to managing cash flows and debt obligations.

The successful allotment of these CPs may be seen as a positive indicator of UGRO Capital's creditworthiness and its ability to raise funds from the market. It also demonstrates the company's active management of its capital structure and liquidity position.

Note: The information in this article is based on the company's disclosure to the stock exchanges and should not be considered as financial advice.

UGRO Capital , a prominent player in the financial services sector, has made significant strides in its expansion plans and financial structuring. The company recently announced two major developments that are set to shape its future trajectory.

RBI Approval for Profectus Capital Acquisition

UGRO Capital has received a crucial green light from the Reserve Bank of India (RBI) for its proposed acquisition of Profectus Capital Private Limited. The RBI granted this approval through a letter dated September 17, following an application filed by Profectus seeking prior approval for the acquisition transaction.

The acquisition, which involves UGRO Capital obtaining 100% shareholding in Profectus Capital, is now expected to close by October 31, subject to customary conditions outlined in the share purchase agreement. This strategic move aligns with UGRO Capital's growth objectives and is poised to strengthen its market position.

Modification in Compulsorily Convertible Debentures (CCDs) Terms

In a related development, UGRO Capital's Securities Allotment and Transfer Committee (SATC) has approved a variation in the terms of Compulsorily Convertible Debentures (CCDs) to be issued on a preferential basis. These CCDs are intended to fund the acquisition of Profectus Capital.

The key modification pertains to the coupon payment structure of the CCDs. Initially, as disclosed in the Postal Ballot Notice dated June 20, the coupon was proposed to be paid in two parts. However, the SATC has now approved that the entire coupon will be paid immediately post-allotment of the CCDs, removing any linkage to subsequent events.

It's important to note that all other terms and conditions of the CCDs remain unchanged. This adjustment in the payment structure demonstrates UGRO Capital's commitment to optimizing its financial instruments while proceeding with its acquisition plans.

Commercial Paper Allotment

In addition to these strategic moves, UGRO Capital's Investment and Borrowing Committee approved the allotment of Commercial Papers (CPs) on September 17. The details of the CP allotment are as follows:

This CP issuance further underscores UGRO Capital's active management of its short-term financial instruments and liquidity position.

These developments collectively highlight UGRO Capital's proactive approach to corporate strategy, financial management, and regulatory compliance. As the company moves forward with its acquisition plans and financial structuring, stakeholders will be keenly watching how these initiatives translate into operational and financial performance in the coming months.