UGRO Capital , a non-banking finance company (NBFC), has taken significant steps to strengthen its capital base and manage its short-term funding needs. The company's Investment and Borrowing Committee has approved the issuance of Non-Convertible Debentures (NCDs) worth INR 50.00 crore through private placement, aimed at enhancing its Tier II capital. Additionally, the company has allotted Commercial Papers worth Rs 9.78 crore.

Key Details of the NCD Issuance

Commercial Paper Allotment

UGRO Capital has also allotted Commercial Papers worth Rs 9.78 crore. The key details of this allotment are:

• Face Value: Rs 5.00 lakh per security
• Issue Price: Rs 4,89,146.50 per security
• Tenure: 91 days
• Redemption Value: Rs 10.00 crore
• Issue and Paying Agent: Yes Bank Limited, Mumbai
• ISIN: INE583D14675

The Commercial Papers are proposed to be listed.

Purpose and Implications

The primary objective of the NCD issuance is to raise subordinated debt as Tier II capital. This move is strategically aligned with the Reserve Bank of India's (RBI) regulations for NBFCs, specifically the Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023. By bolstering its Tier II capital, UGRO Capital aims to enhance its overall capital adequacy ratio, a crucial metric for financial institutions.

The Commercial Paper allotment, on the other hand, addresses the company's short-term funding requirements, providing flexibility in managing its working capital needs.

Investor Meeting Announcement

UGRO Capital has also announced an upcoming virtual group meeting with analysts and investors. The meeting is scheduled as part of the Arihant Bharat Connect Conference: Rising Stars. This interaction provides an opportunity for the company to engage with the investment community and potentially discuss its recent capital-raising initiatives.

Company Background

UGRO Capital Limited, headquartered in Mumbai, operates as a non-banking finance company. The company's strategic focus on capital adequacy improvement through the NCD issuance and efficient short-term funding management via Commercial Papers reflects its commitment to maintaining a strong financial position in the competitive NBFC sector.

As the financial landscape continues to evolve, UGRO Capital's proactive approach to capital management demonstrates its dedication to meeting regulatory requirements and positioning itself for sustainable growth in the Indian financial services market.

UGRO Capital Limited, a non-banking finance company (NBFC), has announced plans to issue non-convertible debentures (NCDs) worth up to Rs. 200.00 crore, marking a significant move to bolster its capital base. This announcement comes in the wake of an earlier Rs. 30.00 crore commercial paper issuance by the company.

Proposed Debenture Issue

The Investment and Borrowing Committee of UGRO Capital's Board of Directors approved the issuance of unsecured, rated, subordinated, listed, taxable, redeemable Non-Convertible Debentures on September 5, 2025. Key details of the proposed NCD issue include:

The company stated that this issuance is aimed at raising subordinated debt as Tier II capital to enhance its capital adequacy in line with the Reserve Bank of India's regulations for NBFCs.

Previous Commercial Paper Issuance

Prior to this announcement, UGRO Capital had successfully raised funds through a commercial paper issuance:

Implications for UGRO Capital

These financial moves demonstrate UGRO Capital's proactive approach to capital management and its efforts to diversify funding sources. The proposed NCD issuance, in particular, is expected to strengthen the company's capital structure and support its growth initiatives in the competitive NBFC sector.

Investors and market watchers will likely keep a close eye on UGRO Capital's financial strategies as it continues to navigate the dynamic landscape of non-banking financial services in India.