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:

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.

UGRO Capital Limited, a prominent MSME financing company, has announced a board meeting scheduled for January 8, 2026, to consider the amalgamation of its wholly owned subsidiary Profectus Capital Private Limited. The company previously reported robust growth with AUM reaching Rs 12,081.00 crores and announced the Rs 1,400.00 crore acquisition of Profectus Capital.

Board Meeting Agenda

Pursuant to Regulation 29 of SEBI Listing Regulations, UGRO Capital's board will convene to address several key matters:

Trading Window Closure

The company has implemented trading restrictions in compliance with insider trading regulations. The trading window remains closed from December 30, 2025, until 48 hours after the declaration of unaudited financial results for the quarter ended December 31, 2025. Additionally, specified persons holding unpublished price sensitive information regarding the proposed merger will face extended trading restrictions.

Strategic Context

This board meeting represents a significant step in UGRO Capital's previously announced acquisition strategy. The company had earlier reported:

Expansion Benefits

The Profectus Capital amalgamation is expected to significantly enhance UGRO's market presence by adding 28 additional branches across 7 new states. This strategic move aligns with the company's medium-term target of achieving Rs 20,000.00 crores in AUM and strengthening its position as a leading MSME lender.

Regulatory Compliance

The amalgamation process will be conducted under the provisions of the Companies Act, 2013, ensuring compliance with all regulatory requirements for shareholders and creditors of both entities. The company has maintained transparency by providing timely intimation to stock exchanges as required under SEBI regulations.