Ugro Capital Raises ₹250 Crore Through Commercial Paper Issuance
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.

*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:
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.
Cost-Effective Financing: CPs often offer a cost-effective alternative to short-term bank loans, potentially allowing UGRO Capital to optimize its funding costs.
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 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+2.80% | +3.76% | +2.33% | +15.46% | -24.79% | +55.77% |