UGRO to raise Rs 915 cr via debenture issue

Mumbai, May 20 (PTI) Non-bank lender UGRO Capital on Tuesday announced its intent to raise up to Rs 915 crore through a compulsory convertible debenture issue.

Apart from this, the entity focused on lending to small businesses will also be raising Rs 400 crore through a rights issue by issuing shares to its existing shareholders, as per an official statement.

The capital raising exercise will take its overall capital adequacy to 29.4 per cent as against 19.41 per cent in March 2025, it said, adding that it will provide a significant headroom for growth.

The company's assets under management increased to Rs 12,003 crore at the end of FY25 from Rs 9,047 crore in FY24-end. There was an uptick in stress, with the gross non-performing assets ratio rising to 2.3 per cent from 2 per cent in the year-ago period.

Board of directors of the company decided to raise capital from the CCD route at its meeting on Tuesday, as per the statement.

"...we are confident that this capital raise would build confidence among all stakeholders including public market institutional investors, rating agency and our liability providers," its managing director Shachindra Nath said.

Existing investor Samena Capital and its private equity funds currently owning 7.49 per cent of the company have committed to put up to Rs 500 crore in the CCD to become a large institutional shareholder, while Singapore's Aregence has committed Rs 168 crore, the statement said, adding that support has also been received from family offices.

In the case of the rights issue, Danish impact investor IFU -- the Investment Fund for Developing Countries, which owns a 16.35 per cent stake in the company at present, has committed Rs 150 crore.

Besides, promoter group and employees will get Rs 34 crore in the CCD and rights issue.

The company had raised Rs 258 crore through CCDs and Rs 1,007 crore through warrants totalling Rs 1,265 crore in June 2024 at a conversion price of Rs 264 per share.

The UGRO scrip closed 1.28 per cent down at Rs 189.45 apiece on the BSE on Tuesday as against a 1.06 per cent correction on the benchmark. PTI AA HVA