India Ratings and Research (Ind-Ra) has maintained UGRO Capital 's debt instruments on Rating Watch with Positive Implications, while affirming its commercial paper ratings. This decision comes amidst UGRO Capital's ongoing acquisition of Profectus Capital Private Limited (PCPL), signaling potential positive developments for the company.

Key Rating Actions

Acquisition Progress

The Rating Watch with Positive Implications is primarily due to UGRO Capital's ongoing acquisition of a 100% stake in Profectus Capital Private Limited. Notably, the Reserve Bank of India (RBI) has already granted approval for the proposed change in control and shareholding of PCPL.

Financial Performance

UGRO Capital has shown significant growth over the past few years, as evidenced by its balance sheet data:

The company has demonstrated strong growth in its asset base, with total assets increasing by 422.47% over the past five years. This growth is accompanied by a corresponding increase in equity and liabilities, indicating expansion in the company's operations and funding sources.

Implications

The maintenance of the Rating Watch with Positive Implications suggests that India Ratings views the ongoing acquisition and UGRO Capital's financial performance favorably. The affirmation of the commercial paper rating at IND A1+ indicates a strong degree of safety regarding timely payment of financial obligations.

As UGRO Capital progresses with the acquisition of PCPL, investors and stakeholders will be keenly watching for the completion of the transaction and its potential impact on the company's credit profile and market position in the non-banking financial sector.

The robust growth in UGRO Capital's balance sheet over the past five years, coupled with the strategic acquisition, positions the company for potential further expansion in the financial services sector. However, it will be crucial to monitor how the company manages this growth and integrates PCPL into its operations once the acquisition is complete.

UGRO Capital Limited, a non-banking financial company, has announced the allotment of unlisted commercial papers (CPs) worth Rs. 110 crores. The Investment and Borrowing Committee of the company's Board of Directors approved this allotment on November 20, 2025.

Key Details of the Commercial Paper Issuance

Significance of the Issuance

This short-term borrowing through commercial papers indicates UGRO Capital's strategy to manage its working capital needs. The 18-day tenure of these securities suggests that the company is leveraging short-term market instruments for immediate liquidity requirements.

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency ensures that shareholders and potential investors are kept informed about significant financial decisions made by the company.

UGRO Capital has stated that this information will be available on the company's official website, further enhancing transparency and accessibility for stakeholders.

As unlisted securities, these commercial papers will not be traded on stock exchanges. However, the issuance reflects on the company's financial management strategies and its ability to raise short-term funds in the current market conditions.