UGRO Capital, a tech-enabled NBFC focused on MSME lending, has launched a public issue of secured, rated, listed, redeemable non-convertible debentures (NCDs) offering yields of up to 11.01% per annum.
The issue opened on April 3, 2025, and is scheduled to close on April 21, 2025, with the option of early closure as per SEBI norms.
The issue has a base size of ₹100 crore and a green shoe option of another ₹100 crore, taking the total size up to ₹200 crore.
The NCDs are rated IND A+/Stable by India Ratings and Research.
The NCDs will be listed on both NSE and BSE, with NSE.
The company is offering NCDs across five series with tenors of 18, 24, 30, and 42 months and monthly or annual interest payment options.
The effective annualised yield ranges from 10.47% to 11.01%.
Here’s a snapshot of key options:
| Series | Tenor | Coupon (p.a.) | Frequency | Effective Yield (p.a.) |
|---|---|---|---|---|
| I | 18 months | 10.00% | Monthly | 10.47% |
| II | 18 months | 10.39% | Annual | 10.47% |
| III | 24 months | 10.15% | Monthly | 10.64% |
| IV | 30 months | 10.25% | Monthly | 10.75% |
| V* | 42 months | 10.50% | Monthly | 11.01% |
The face value per NCD is ₹1,000, and the minimum application size is ₹10,000 (10 NCDs).
UGRO Capital said at least 75% of the net proceeds from the NCD issue will be used for onward lending, financing, and refinancing existing borrowings.
The remaining up to 25% will be used for general corporate purposes.
As of December 31, 2024, UGRO Capital had a capital adequacy ratio (CRAR) of 21.52%. Its assets under management (AUM) grew nearly three-fold in two years—from ₹2,96,890.60 lakh in FY22 to ₹9,04,705.74 lakh in FY24.
Tipsons Consultancy Services is the sole lead manager to the issue. MUFG Intime India (formerly Link Intime India Pvt Ltd) is the registrar, and MITCON Credentia Trusteeship Services is the debenture trustee.
First Published: Apr 5, 2025 4:57 PM IST