Ugro Capital Raises ₹250 Crore Through Commercial Paper Issuance

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+8.14%	+1.23%	-20.81%	-48.53%	-47.07%	-21.63%

UGRO Capital Limited, a DataTech NBFC focused on MSME lending, has announced its financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company reported significant growth in its Assets Under Management (AUM), total income, and net profit.

Financial Highlights

Assets Under Management (AUM) grew by 31% YoY to ₹12,081.00 crore
Total income stood at ₹421.80 crore, marking a 40% increase year-on-year
Net profit after tax (PAT) rose to ₹34.10 crore, up 12% from the previous year
Net Total Income increased by 31% YoY to ₹216.50 crore

Operational Performance

UGRO Capital's performance in Q1 FY26 demonstrated resilience and growth across various parameters:

Disbursements for the quarter reached ₹1,599.00 crore
The company maintained a stable asset quality with Gross Non-Performing Assets (GNPA) at 2.5% and Net Non-Performing Assets (NNPA) at 1.7% of total AUM

Strategic Developments

The company made significant strides in its growth strategy:

Embedded Finance Growth: The Embedded Finance platform crossed ₹1,000.00 crore in AUM, with Q1 disbursements of ₹582.00 crore through partnerships including PhonePe and BharatPe.
Emerging Market Expansion: UGRO Capital expanded its branch network to 309 operational branches, with plans to reach approximately 346 branches by September 2025.
Capital Raise: The company completed a rights issue of ₹381.00 crore and is in the process of a ₹911.00 crore preferential issue to strengthen its balance sheet.
Strategic Acquisition: UGRO Capital is advancing with the all-cash acquisition of Profectus Capital Private Limited for ₹1,400.00 crore, having received shareholder approval.

Management Commentary

Shachindra Nath, Managing Director of UGRO Capital, commented on the results: "Q1 was a quarter of discipline. We tightened underwriting standards and moderated originations where borrower leverage was elevated, prioritizing discipline over pace during the seasonally softer first quarter."

Future Outlook

UGRO Capital remains focused on building its next engines of growth through Emerging Market distribution, Embedded Finance partnerships, and the Profectus acquisition. With capital actions underway and approvals progressing, the company is well-positioned for the next phase of high-quality growth in the MSME lending sector.