UGRO Capital , a prominent player in the financial services sector, has launched a significant capital raising initiative. The company has opened a public issue of Non-Convertible Debentures (NCDs) worth up to ₹200 crores and announced a rights issue to raise up to ₹400 crores.

NCD Issuance Details

UGRO Capital has launched a public issue of secured, rated, listed, redeemable non-convertible debentures with the following key features:

At least 75% of the NCD proceeds will be used for onward lending and financing business.

Rights Issue Announcement

In addition to the NCD issue, UGRO Capital has announced a rights issue with the following details:

Company Performance

UGRO Capital has reported strong growth in its recent financial performance:

• Assets Under Management (AUM) growth: From ₹6,081.00 crores to ₹12,003.00 crores in the latest period
• Profit before tax: Increased to ₹203.00 crores

Conclusion

The launch of the NCD issue and the announcement of the rights issue demonstrate UGRO Capital's proactive approach to capital management. These moves are likely aimed at supporting the company's growth strategies and strengthening its market position. The significant growth in AUM and profitability underscores the company's potential in the financial services landscape.

UGRO Capital , a non-banking financial company (NBFC), has successfully raised ₹250 crore through the issuance of commercial papers (CPs) via private placement. This move highlights the company's strategy to optimize its short-term funding requirements and manage working capital efficiently.

Key Details of the Commercial Paper Issuance

According to the latest disclosure by UGRO Capital to the stock exchanges, the company's Investment and Borrowing Committee approved the allotment of commercial papers. Here are the essential details of the CP issuance:

Significance of the Fundraising

Commercial papers are unsecured, short-term debt instruments typically used by companies to meet their immediate working capital needs. The successful placement of these CPs by UGRO Capital indicates:

1. Strong Market Confidence: The ability to raise ₹250 crore through CPs suggests that investors have confidence in UGRO Capital's short-term financial stability and repayment capacity.

2. Cost-Effective Financing: CPs often offer a cost-effective alternative to short-term bank loans, potentially allowing UGRO Capital to optimize its funding costs.

3. Liquidity Management: This fundraising exercise enhances UGRO Capital's liquidity position, providing flexibility in managing its short-term financial obligations and supporting business operations.

Listing and Compliance

UGRO Capital has stated that the commercial papers are proposed to be listed, which will enhance their tradability in the secondary market. Yes Bank Limited, Mumbai, has been appointed as the Issuing and Paying Agent (IPA) for this CP issuance.

The company has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating its commitment to transparent communication with stakeholders.

As UGRO Capital continues to diversify its funding sources and strengthen its financial position, this successful CP issuance marks another step in its growth trajectory in the competitive NBFC sector.