UGRO Capital NCD opens for subscription on 08 February 2024. The company aims for a base issue size of ₹100 Crores.
About the company
Ugro Capital is a non-deposit-taking systemically important NBFC registered with the RBI. The company has been categorized as a ‘Middle Layer’ NBFC under the scale-based regulatory framework for NBFCs introduced by the RBI, with effect from 30 September 2022 and updated vide Scale Based Regulation. Ugro Capital is currently engaged in the business of lending and primarily deals in financing SME and MSME sectors with a focus on Healthcare, Education, Chemicals, Food Processing/FMCG, Hospitality, Electrical Equipment & Components, Auto Components and Light Engineering segments, and Micro Enterprises segments. The company offers the following loan products and solutions to MSMEs through our technology platforms:
- Prime Secured Loans
- Prime Unsecured Loans
- Micro Enterprise Loans
- Machinery Loans
- Supply Chain Finance
- Partnerships and Alliances
Ugro Capital serves a diverse set of customers. Presently, the branches are divided into two segments i.e., prime branches having bases in metro, tier 1, and tier 2 cities with customer turnover of INR 1 crore to INR 15 crore and micro branches having bases in tier 3 to 6 cities having customer turnover of less than INR 1 crore. Of the said AUM, approximately 73% is in the form of secured/ quasi-secured lending.
The company’s underwriting model GRO Score 3.0 has helped in the growth of the business and the company has collaborated with 13 co-lending partners, over 58 lenders, 40 fintechs, 70 Anchors, 50 OEMs, and 500 GRO partners to provide data-backed customized finance solutions to over 67,000 MSMEs across India.
Objectives of the Issue
- For onward lending and financing business of the Company in the ordinary course of business (including for repayment / refinance of existing debts of the Company).
- General corporate purposes.
UGRO Capital NCD Details
| Issue Open | February 8, 2024 – February 21, 2024 |
| Security Name | UGRO Capital Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | ₹ 100 Crores |
| Issue Size (Oversubscription) | ₹ 100 Crores |
| Overall Issue Size | ₹ 200 Crores |
| Issue Price | ₹ 1000 per NCD |
| Face Value | ₹ 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE, NSE |
| Credit Rating | IND A/Stable by India Ratings & Research Private Limited |
| Tenor | 18, 24 and 27 months |
| Series | Series I to V |
| Payment Frequency | Monthly, Quarterly and Annually |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Mitcon Credentia Trusteeship Services Limited |
UGRO Capital NCD Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 18 months | Monthly | 10.25% | 10.72% | ₹ 1,000 |
| Series 2 | 18 months | Annual | 10.75% | 10.82% | ₹ 1,000 |
| Series 3 | 24 months | Quarterly | 10.35% | 10.74% | ₹ 1,000 |
| Series 4 | 27 months | Monthly | 10.50% | 11.01% | ₹ 1,000 |
| Series 5 | 27 months | Annual | 11.00% | 11.03% | ₹ 1,000 |
UGRO Capital NCD Rating
The NCDs proposed to be issued under the Issue have been rated “IND A/Stable” for an amount of ₹20,000 lakh by India Ratings & Research Private Limited.
Company Financials
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 5,330.69 | 4,305.59 | 2,854.23 | 1,750.89 |
| Revenue | 471.98 | 683.76 | 313.42 | 153.34 |
| Profit After Tax | 54.13 | 39.78 | 14.55 | 28.73 |
| Net Worth | 1,404.92 | 984.04 | 966.56 | 952.44 |
| Total Borrowing | 3,148.93 | 1,801.84 | 765.69 |
UGRO Capital NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 100,000 |
| Non-Institutional | 100,000 |
| HNI | 400,000 |
| Retail | 400,000 |
| Total NCD’s | 1,000,000 |
Company Promoters
- Poshika Advisory Services LLP
UGRO Capital NCD Lead Manager
JM FINANCIAL LIMITED
7th Floor, Cnergy, Appasaheb Marathe Marg,
Prabhadevi Mumbai – 400 025
Phone: +91 22 6630 3030
Email: urgo.ncd2023@jmfl.com
Website: jmfl.com
UGRO Capital Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 810 811 4949
Email: urgocapital.ncd2023@linkintime.co.in
Website: www.linkintime.co.in
Company Contact Details
UGRO CAPITAL LIMITED
Equinox Business Park, Tower 3, Fourth Floor,
Off BKC, LBS Road, Kurla, Mumbai – 400070, Maharashtra
Phone: +91 22 4182 1600
Email: cs@ugrocapital.com
Website: https://www.ugrocapital.com
Final Thoughts
Non-convertible debentures (NCDs) are a better investment option for those who are looking for a diversified portfolio. investing in UGRO Capital NCD is purely your personal choice. make a good study and analysis before you make the investment decision.
Happy Investing
