UGRO Capital Approves INR 915 Crore Capital Raise via Compulsorily Convertible Debentures
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UGRO Capital, a DataTech-driven NBFC focused on MSME financing, has announced a preferential issue of Compulsorily Convertible Debentures (CCDs) amounting to INR 915 crore, following approval by its Board of Directors. The move is aimed at accelerating the company's growth trajectory and expanding its lending capabilities in the underserved MSME segment. The announcement was made via a press release.
The new CCDs will be issued at a conversion price of INR 185 per share, significantly lower than the INR 264 conversion price set during UGRO's previous capital raise in June 2024, when the company secured INR 258 crore via CCDs and INR 1,007 crore through warrants. The latest infusion is expected to lift UGRO Capital's capital adequacy ratio from 19.41 per cent at the close of FY25 to 29.4 per cent, providing a substantial buffer to support its expansion plans.
The company's assets under management (AUM) doubled from INR 6,081 crore in FY23 to INR 12,003 crore in FY25. During the same period, profit before tax surged from INR 84 crore to INR 203 crore, while return on assets (ROA) improved from 1.3 per cent to 2.9 per cent (excluding Emerging Market branch expansion impact).
Shachindra Nath, managing director of UGRO Capital, said, "UGRO has delivered strong operating performance. I am thankful for all of the existing shareholders and warrant holders for committing a significant amount of capital to UGRO which would ensure that UGRO continues on its growth journey."
The preferential allotment has drawn major commitments from institutional investors. Samena Capital and its private equity funds, which already hold a 7.49 per cent stake in UGRO, have committed up to INR 500 crore, positioning them as a leading institutional shareholder. Singapore-based public market investor Aregence has committed INR 168 crore, while several prominent family offices have also participated.
To ensure equitable participation for retail investors, UGRO's board has also approved a rights issue of up to INR 400 crore. The terms will be finalized in an upcoming board meeting. IFU, the Danish Government's impact fund and an existing investor with a 16.35 per cent stake, has pledged INR 150 crore toward the rights Issue. Promoters and employees have jointly committed INR 34 crore via both CCDs and the rights Issue.
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