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 This decision comes just two days after the company had withdrawn the proposed issuance on December 22, 2025.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.

UGRO Capital , a non-banking financial company (NBFC), has taken a significant step to strengthen its capital base by issuing non-convertible debentures (NCDs) worth INR 50 crore. This move comes as part of the company's strategy to enhance its capital adequacy in line with the Reserve Bank of India's (RBI) Scale Based Regulation Directions, 2023.

Key Details of the NCD Issuance

The Investment and Borrowing Committee of UGRO Capital approved the allotment of 5,000 unsecured, rated, subordinated non-convertible debentures. Here are the essential details of the issuance:

Strategic Implications

This subordinated debt issuance serves a dual purpose for UGRO Capital:

1. Capital Adequacy Enhancement: The NCDs will be classified as Tier II capital, directly contributing to the company's capital adequacy ratio. This aligns with the RBI's guidelines for NBFCs under the Scale Based Regulation Directions, 2023.

2. Regulatory Compliance: By bolstering its Tier II capital, UGRO Capital is proactively ensuring compliance with regulatory requirements, potentially positioning itself for sustainable growth.

Market Impact

The successful placement of these NCDs may be viewed positively by the market, as it demonstrates UGRO Capital's ability to raise funds and strengthen its balance sheet. This could potentially enhance investor confidence in the company's financial stability and growth prospects.

Conclusion

UGRO Capital's decision to issue INR 50 crore worth of NCDs as Tier II capital reflects a strategic move to reinforce its financial position. As the financial services sector continues to evolve under new regulatory frameworks, such capital-raising initiatives may become increasingly common among NBFCs aiming to ensure robust capital structures and regulatory compliance.

Investors and market watchers will likely keep a close eye on how this capital infusion translates into UGRO Capital's business performance and regulatory standing in the coming quarters.