UGRO Capital , a prominent player in the financial services sector, has made a significant move in the debt market. The company's Investment and Borrowing Committee has approved the issuance of non-convertible debentures (NCDs) worth up to ₹3 billion, with an additional green shoe option of ₹1.5 billion.

Key Details of the NCD Issuance

The NCDs will be issued through a private placement, with the following characteristics:

Series-wise Breakdown

The NCDs will be issued in three different series, each with its own tenure and coupon rate:

Additional Features

• Interest Payment: Monthly
• Redemption: On the date of maturity
• Security: First ranking, exclusive, and continuing charge by way of hypothecation over all loan receivables
• Security Cover: Minimum 1.10 times or 110% of the outstanding NCDs

This strategic move by UGRO Capital is aimed at raising funds without diluting equity. The varying tenures and competitive interest rates of the NCDs could attract a diverse range of investors, potentially providing the company with the capital needed for its growth and operational requirements.

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.