UGRO Capital secures Rs 1,265cr in capital raise amid market fluctuations
UGRO Capital Limited (NSE: UGROCAP | BSE: 511742), a leading DataTech non-banking financial company (NBFC) specializing in MSME lending, today announced the successful completion of its substantial equity capital raise, securing INR 1,265 Crore through the allotment of Compulsory Convertible Debentures (CCD) and warrants. This financial move was part of a larger equity capital raise of INR 1,332.66 Crore approved by the company’s Board of Directors on May 2, 2024, amidst the Indian general elections.
Despite the uncertainties brought about by the election results and resultant market fluctuations, UGRO Capital maintained strong investor support. The company managed to successfully allot CCDs worth INR 258 Crore and warrants valued at INR 1,007 Crore, with significant backing from existing private equity investor Samena Capital, which alone committed INR 500 Crore through Warrants. Additional substantial investments came from institutional investors like Aregence and several prominent Indian family offices. The founders, board members, and management team of UGRO also participated in the Warrants issue.
These warrants are set to be exercised within 18 months from the date of their allotment, with subscribers initially paying 25% of the issue price, and the remainder due 18 months later. This strategic fundraising marks the third such initiative for UGRO Capital, underlining its ongoing expansion and investor confidence.
Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, expressed gratitude and optimism, stating, “Securing this capital raise amidst market ups and downs speaks volumes about the sheer trust our investors have in us. Our aim has always been to build a DataTech-driven lending institution that is institutionally owned, independently supervised, and professionally managed.” Since its inception, UGRO Capital has evolved from acquiring Chokhani Securities Limited, a listed NBFC with a net worth of INR 40 Crore, to raising a total equity commitment of INR 2,700 Crore. This includes significant capital injections from international and domestic investors, reflecting its robust growth trajectory and commitment to supporting MSMEs across India.
UGRO Capital’s strategic initiatives have significantly extended its market presence and financial base, with a total outstanding debt of INR 4,643 Crore from domestic and international institutions. The company has collaborated with 13 banks and other financial institutions to facilitate INR 3,295 Crore of co-lending, delivering tailored financial solutions to over 78,000 MSMEs across India.