UGRO Capital Limited has issued a revised communication to stock exchanges, correcting a typographical error in their recent Investment and Borrowing Committee meeting outcome. The correction pertains to the default interest rate for their upcoming Non-Convertible Debentures (NCDs) issuance.

Key Details of the Correction

The company has amended the default interest rate from the erroneously stated "2.00% (One Percent) per annum" to the correct "2.00% (Two Percent) per annum". This revision ensures accurate information for potential investors and maintains transparency in the company's communications.

Debenture Issuance Overview

UGRO Capital's upcoming NCD issuance includes the following key features:

Additional Information

• The debentures will be unsecured, with no specific charge or security attached.
• In case of delayed payments, a default interest of up to 2.00% per annum may be applied, as agreed between the company and investors.
• The company has confirmed that there are no special rights, interests, or privileges attached to these instruments.

This correction demonstrates UGRO Capital's commitment to providing accurate information to its stakeholders and potential investors. It's a crucial step in maintaining transparency and ensuring that all parties have the correct details regarding the upcoming debenture issuance.

Investors and market participants are advised to take note of this correction, particularly the revised default interest rate, when considering their investment decisions related to UGRO Capital's Non-Convertible Debentures.

UGRO Capital , a non-banking finance company (NBFC), has announced plans to issue non-convertible debentures (NCDs) to raise funds and bolster its capital adequacy. The company's Investment and Borrowing Committee has approved the issuance of unsecured, rated, subordinated, listed, taxable, redeemable NCDs through a private placement.

Issue Details

Purpose and Implications

The NCD issue is designed to raise subordinated debt as Tier II capital, aimed at enhancing UGRO Capital's capital adequacy. This move aligns with the Reserve Bank of India's (RBI) Master Direction for Non-Banking Financial Company – Scale Based Regulation Directions, 2023.

Key Features of the NCDs

• Security: The NCDs will be unsecured.
• Interest Payment: Interest is payable on a monthly basis.
• Redemption: The principal amount will be redeemed on the maturity date.
• Default Interest: In case of delayed payments, an additional interest of up to 2.00% per annum may be applicable.

Investor Considerations

Potential investors should note that these NCDs are subordinated, which typically implies a higher risk profile compared to senior debt. However, the higher indicative coupon rate of 11.65% p.a. may be attractive to those seeking higher yields and willing to accept the associated risks.

UGRO Capital's decision to issue NCDs comes at a time when NBFCs are increasingly looking to diversify their funding sources and strengthen their capital base. The success of this issue could provide insights into investor appetite for NBFC debt instruments in the current market environment.

As always, investors are advised to carefully review the terms and conditions of the issue and consider their risk appetite before making investment decisions.