UGRO Capital , a prominent player in the non-banking financial sector, has recently made significant changes to its senior management team and announced plans for a substantial non-convertible debenture (NCD) issuance. These developments signal a new chapter for the company as it strengthens its leadership and capital base.

Leadership Overhaul

UGRO Capital implemented a series of high-level management changes:

• New CEO: Anuj Pandey, previously the Chief Risk Officer, has been elevated to the position of CEO. Pandey has also been designated as a Key Managerial Personnel.

• Chief Risk Officer: Irem Sayeed, formerly the Chief Credit Officer, has been promoted to Chief Risk Officer for a five-year term. Sayeed brings over 20 years of experience in financial services, having worked with notable institutions such as Mswipe Technologies, Magma Fincorp, Kotak Mahindra Bank, and GE Capital.

• Chief Revenue Officer: Sameer Nanda has been promoted from his previous role as Chief Collection and Litigation Officer. Nanda boasts more than 25 years of experience in the lending business, with stints at ABN AMRO Bank, ICICI Bank, and Religare.

• Chief Financial Officer: Shilpa Bhatter has been appointed as the new CFO. Bhatter is a Chartered Accountant with over 18 years of experience in the BFSI sector. In her previous role as CFO at Dvara Kshetriya Gramin Financial Services, she successfully mobilized over ₹4,000 crores in debt.

These appointments have led to the departure of two executives:

• Kishore Lodha has resigned as CFO.
• Amit Mande will continue as Chief Revenue Officer until August 8 to ensure a smooth transition.

Planned NCD Issuance

In addition to the leadership changes, UGRO Capital has announced plans for a significant capital raise through the issuance of Non-Convertible Debentures (NCDs). The Investment and Borrowing Committee of the Board of Directors approved this move. Key details of the proposed NCD issuance include:

The company stated that this issuance is aimed at raising subordinated debt as Tier II capital to enhance its capital adequacy, in line with the Reserve Bank of India's regulations for Non-Banking Financial Companies.

These strategic moves - both in terms of leadership restructuring and capital raising - demonstrate UGRO Capital's commitment to strengthening its position in the competitive non-banking financial sector. The infusion of experienced leadership and additional capital is likely to support the company's growth plans and operational capabilities in the coming years.

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.