Ugro Capital Limited allotted commercial papers worth ₹14.66 crore on September 17, 2026. The Investment and Borrowing Committee of the Board approved the issuance pursuant to Regulation 30 of the SEBI Listing Regulations.

The company disclosed the allotment details to the stock exchanges, confirming the transaction was executed on Thursday, September 17, 2026. The securities are proposed to be listed.

Deal Terms

The commercial papers carry a face value of ₹5,00,000 per security. They were issued at a price of ₹4,88,563.50 each. The total issue value stands at ₹14,65,69,050.

The redemption value for the tranche is ₹15,00,00,000. Yes Bank Limited acted as the Issue Principal Agent (IPA) for the placement.

What the Numbers Show

The difference between the total redemption value of ₹15,00,00,000 and the issue value of ₹14,65,69,050 indicates the implied interest cost for the 96-day tenure. This structure reflects standard discount issuance practices for short-term corporate debt.

UGRO Capital has raised ₹380 crore through the issuance of senior, secured, rated, listed, redeemable and transferable Non-Convertible Debentures (NCDs). The transaction was fully subscribed by Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), the Dutch entrepreneurial development bank.

The five-year tenor of the new instrument matches the long-duration secured lending UGRO extends to small businesses in Tier-3 towns and beyond. This is FMO's third investment in UGRO Capital in under three years, following NCD investments of ₹250 crore in December 2023 and ₹260 crore in February 2025.

Funding structure and deployment

The new issuance brings FMO's cumulative commitment to UGRO to ₹890 crore. It also pushes the total development finance and impact capital raised by the company to over ₹1,300 crore from institutions including IFU, ADB, Triple Jump, BlueOrchard, responsAbility, Calvert Impact Capital, Enabling Qapital, GMO, WaterEquity and MicroVest.

Proceeds from the latest tranche will be deployed towards financing for women-owned and women-led SMEs, youth-owned and youth-led SMEs and rural SMEs. The funds will also contribute towards financing or refinancing eligible green projects aligned with FMO's sustainability approach.

What the Numbers Show

UGRO’s funding strategy reveals a deliberate shift toward diversified, long-tenor institutional capital that reduces dependency on the domestic banking system. With over ₹1,300 crore raised from development finance institutions and impact-focused investors, the company has anchored its growth in relationships driven by measurable social outcomes rather than short-term liquidity needs. This structural diversification supports its ability to scale lending in underserved geographies where traditional banks have limited presence.

Portfolio performance and impact

In Q1 FY27, UGRO’s GROx platform disbursed ₹1,853 crore, with assets under management (AUM) rising 32% quarter-on-quarter to ₹3,003 crore. The platform serves approximately 3.4 lakh active customers and originates more than 60,000 loans every month.

The Emerging Market network comprises 317 branches across 13 states, supported by more than 2,500 employees. About four-fifths of this portfolio sits in Tier-3 geographies and beyond. Together, the Emerging Market and GROx portfolios accounted for 46% of total AUM as on June 30, 2026, up from 32% in December 2025.

Shachindra Nath, Founder, Vice Chairman and Managing Director, stated that development capital now views MSME lending in India as a segment that generates strong returns without trade-offs against social impact. Juan Jose Dada Ortiz, Co-Chief Investment Officer at FMO, noted that UGRO’s data-driven approach enables it to reach businesses often underserved by the formal financial sector.