Ugro Capital Raises ₹250 Crore Through Commercial Paper Issuance

1 min read     Updated on 29 Aug 2025, 09:36 PM
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Overview

UGRO Capital, an NBFC, has raised ₹250 crore through commercial paper issuance via private placement. The 90-day CPs have a face value of ₹5,00,000 per unit and an issue price of ₹4,89,027. The total issue value is ₹24,45,13,500 with a redemption value of ₹25,00,00,000. This fundraising demonstrates market confidence in UGRO Capital, provides cost-effective financing, and enhances the company's liquidity position. The CPs are proposed to be listed, with Yes Bank Limited, Mumbai, appointed as the Issuing and Paying Agent.

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*this image is generated using AI for illustrative purposes only.

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:

Particulars Details
Face Value per CP ₹5,00,000
Issue Price per CP ₹4,89,027
Total Issue Value ₹24,45,13,500
Redemption Value ₹25,00,00,000
Tenure 90 days
ISIN INE583D14659

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.

Historical Stock Returns for UGRO Capital

1 Day5 Days1 Month6 Months1 Year5 Years
+2.80%+3.76%+2.33%+15.46%-24.79%+55.77%
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UGRO Capital Reports 31% YoY AUM Growth, Announces Rs 1,400 Crore Profectus Capital Acquisition

1 min read     Updated on 19 Aug 2025, 07:01 PM
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Overview

UGRO Capital's AUM reached Rs 12,081.00 crores, up 31% YoY. Total income grew 40% to Rs 421.80 crores, with PAT up 12% to Rs 34.10 crores. The company acquired Profectus Capital for Rs 1,400.00 crores, adding Rs 3,468.00 crores to its AUM. UGRO expanded to 286 branches, raised Rs 1,300.00 crores capital, and improved its capital adequacy ratio to 22.4%. The company aims for a medium-term AUM target of Rs 20,000.00 crores. Anuj Pandey was elevated to CEO.

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*this image is generated using AI for illustrative purposes only.

UGRO Capital Limited, a prominent MSME financing company, has reported robust growth in its Assets Under Management (AUM) for the quarter ended June 30. The company's AUM reached Rs 12,081.00 crores, marking a significant 31% year-over-year increase.

Financial Performance

UGRO Capital posted impressive financial results:

  • Total income grew by 40% YoY to Rs 421.80 crores
  • Profit after tax (PAT) increased by 12% YoY to Rs 34.10 crores
  • Net total income rose by 31% YoY to Rs 216.50 crores

The company maintained its asset quality with a Gross Non-Performing Asset (GNPA) ratio of 2.5% and a Net NPA ratio of 1.7%.

Strategic Acquisition

UGRO Capital announced a significant all-cash acquisition of Profectus Capital for Rs 1,400.00 crores. This strategic move is expected to:

  • Add Rs 3,468.00 crores to UGRO's AUM
  • Expand presence to 7 new states with 28 additional branches
  • Strengthen the company's secured asset mix
  • Accelerate UGRO's journey towards becoming India's largest MSME lender

Business Expansion

The company has made substantial progress in expanding its business operations:

  • Emerging Markets business expanded to 286 operational branches
  • Embedded Finance crossed the milestone of Rs 1,000.00 crores AUM
  • MyShubLife platform achieved monthly disbursals of Rs 100.00-150.00 crores

Capital Raising

UGRO Capital has successfully raised capital to support its growth:

  • Completed a Rs 381.00 crores rights issue
  • Processing a Rs 911.00 crores preferential issue
  • Total capital raising of approximately Rs 1,300.00 crores

These capital infusions have improved the company's capital adequacy ratio to 22.4%.

Future Outlook

UGRO Capital's management has set ambitious targets for the future:

  • Medium-term AUM target of Rs 20,000.00 crores
  • Expectation to achieve 4% steady-state Return on Assets (ROA) in 6-8 quarters

Shachindra Nath, Founder and Managing Director of UGRO Capital, commented on the results: "We have been maintaining that MSME financing in this decade is the largest credit opportunity in India. And for us, every quarter solidifies its base."

The company's focus on secured lending, with approximately 70% of its book being secured, positions it well to navigate potential market challenges.

Management Changes

UGRO Capital also announced the elevation of Anuj Pandey as the new CEO, recognizing his talent and contribution since the company's inception. This move is expected to strengthen the company's operational focus while allowing the founder to concentrate on strategic initiatives.

With its strategic acquisition, expanded branch network, and robust capital position, UGRO Capital appears well-positioned for continued growth in the MSME financing sector.

Historical Stock Returns for UGRO Capital

1 Day5 Days1 Month6 Months1 Year5 Years
+2.80%+3.76%+2.33%+15.46%-24.79%+55.77%
UGRO Capital
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