UGRO Capital Limited, a prominent player in the financial services sector, has successfully raised INR 150 crore through the allotment of non-convertible debentures (NCDs) via private placement. This strategic move, executed on October 17, 2025, marks a significant step in the company's financial operations.

Key Details of the NCD Issuance

Security and Redemption

UGRO Capital has committed to maintaining a minimum security cover of 1.10 times over loan receivables throughout the tenure of the debentures. This provision aims to safeguard the interests of the debenture holders. The NCDs are set to be redeemed at par value upon maturity.

Significance of the Move

This successful fund-raising initiative through NCDs demonstrates UGRO Capital's ability to tap into debt markets effectively. The funds raised may potentially be utilized for various purposes such as expanding lending activities, refinancing existing debt, or supporting overall business growth.

Regulatory Compliance

The company has adhered to the necessary regulatory requirements, including informing the stock exchanges as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency in financial activities is crucial for maintaining investor confidence and regulatory compliance.

UGRO Capital's strategic decision to issue NCDs comes at a time when companies are exploring diverse funding avenues. This move may be seen as part of the company's broader financial strategy to optimize its capital structure and support its business objectives in the dynamic financial services landscape.

UGRO Capital , a prominent player in the financial services sector, has made a significant move in the debt market by allotting commercial papers (CPs) worth ₹14.45 crore. This strategic financial decision demonstrates the company's active engagement in short-term borrowing to potentially support its operational needs and growth initiatives.

Key Details of the Commercial Paper Issuance

Significance of the Issuance

The commercial papers issued by UGRO Capital carry a face value of ₹5.00 lakh per security but are priced at ₹4.81 lakh, indicating a discount to face value typical of such short-term debt instruments. This pricing structure allows investors to earn returns through the difference between the purchase price and the redemption value.

With a redemption value set at ₹15.00 crore, the company is effectively borrowing at competitive rates for its short-term financing needs. The 158-day tenure of these CPs provides UGRO Capital with flexibility in managing its cash flows while offering investors a relatively short-term investment opportunity.

Listing and Regulatory Compliance

UGRO Capital has proposed to list these commercial papers, a move that could enhance the liquidity of the instruments for investors. The company's prompt disclosure of this allotment, in line with Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements, underscores its commitment to transparency and regulatory compliance.

The Investment and Borrowing Committee of UGRO Capital's Board of Directors approved this allotment, reflecting the strategic nature of the decision within the company's financial planning framework.

As the financial landscape continues to evolve, UGRO Capital's utilization of commercial papers demonstrates its active approach to capital management and its ability to leverage various financial instruments to support its business objectives.