UGRO Capital’s non-convertible debentures (NCDs) opened on February 8 for subscription and the investors of this issue have the opportunity to earn between 10.72% and 11.03% income per annum across categories. The face value of each NCD is Rs 1,000 (1 NCD).
It will close on Wednesday, February 21, 2024, with an option of early closure subject to compliance with Regulation 33A of the SEBI NCS Regulations.
The issue has a base issue size of Rs 100 crore with an option to retain oversubscription up to Rs 100 crore, aggregating up to Rs 200 crore.
The NCDs are proposed to be listed on the stock exchanges, and NSE is the designated stock exchange for the issue. The NCDs have been rated “IND A/Stable” by India Ratings & Research Private Limited.
This issue has a tenor of 18 months, 24 months, and 27 months for secured NCDs. Effective yield (% per annum) for NCD holders in all categories ranges from 10.72% to 11.03%. Redemption Amount (Rs / NCD) on maturity for NCD holders in all categories range is Rs 1000, and for Series III it is through staggered redemption in eight quarterly payments of Rs 125 each, starting from 1st quarter from the deemed date of allotment until maturity.
At least 75% of the net proceeds of the issue shall be utilized for onward lending and financing business of the company in the ordinary course of business (including for repayment / refinance of existing borrowings), and not exceeding 25% shall be used for general corporate purposes.
JM Financial is the sole lead manager, Link Intime India Private Limited is the Registrar, and Mitcon Credentia Trusteeship Services Limited is the debenture trustee to the issue.
UGRO Capital Limited is currently engaged in the business of lending and primarily deals in financing SME and MSME sectors.
As of March 31, 2023, its CRAR, in accordance with the audited financial results, was at 20.23% and for the nine-month period ended December 31, 2023, stood at 22.27%.
UGRO’s AUM has grown from Rs 1316.87 crore as of March 31, 2021, and Rs 2969.80 crore as of March 31, 2022, to Rs 6080.71 crore as of March 31, 2023. As of December 31, 2023, our AUM is at Rs 8363.76 crore. Across the offered products, as of December 31, 2023, the average ticket size stood at Rs 16.19 lakh and our average lending rate stood at 16.3% p.a.
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