UGRO Capital , a non-banking financial company (NBFC), has announced impressive financial results for the second quarter of fiscal year 2024, showcasing strong growth across key metrics.

Significant AUM Growth

The company reported a substantial increase in its Assets Under Management (AUM), reaching INR 7,590.00 crore. This marks a remarkable 73% year-on-year growth and a solid 12% quarter-on-quarter increase, demonstrating UGRO Capital's consistent expansion in the lending market.

Loan Origination Performance

UGRO Capital's loan origination figures for Q2 FY24 were equally impressive:

These figures underscore the company's growing market presence and its ability to capture lending opportunities effectively.

Improved Collection Efficiency

The company reported an enhancement in its collection efficiency, which improved to 97.6% from 96.8% in the previous quarter. This improvement indicates stronger asset quality and effective collection practices.

Diversified Lender Base and Debt Position

UGRO Capital maintains a well-diversified lender base, comprising 60 active lenders. The company's total debt stands at INR 3,800.00 crore, reflecting its robust funding capabilities.

Strategic Shift in AUM Composition

A notable development in UGRO Capital's business strategy is the increasing proportion of off-book AUM. As of September 2023, the off-book AUM reached 45%, up from 29% in September 2022. This shift aligns with the company's stated target of achieving a 50% off-book AUM proportion, indicating a strategic move towards a more balanced asset management approach.

Conclusion

UGRO Capital's Q2 FY24 results demonstrate the company's strong performance in key areas such as AUM growth, loan origination, and collection efficiency. The strategic shift towards a higher off-book AUM proportion and a diversified lender base positions the company well for sustained growth in the competitive NBFC sector.

UGRO Capital , a prominent player in the financial services sector, has launched a significant capital raising initiative. The company has opened a public issue of Non-Convertible Debentures (NCDs) worth up to ₹200 crores and announced a rights issue to raise up to ₹400 crores.

NCD Issuance Details

UGRO Capital has launched a public issue of secured, rated, listed, redeemable non-convertible debentures with the following key features:

At least 75% of the NCD proceeds will be used for onward lending and financing business.

Rights Issue Announcement

In addition to the NCD issue, UGRO Capital has announced a rights issue with the following details:

Company Performance

UGRO Capital has reported strong growth in its recent financial performance:

• Assets Under Management (AUM) growth: From ₹6,081.00 crores to ₹12,003.00 crores in the latest period
• Profit before tax: Increased to ₹203.00 crores

Conclusion

The launch of the NCD issue and the announcement of the rights issue demonstrate UGRO Capital's proactive approach to capital management. These moves are likely aimed at supporting the company's growth strategies and strengthening its market position. The significant growth in AUM and profitability underscores the company's potential in the financial services landscape.