UGRO Capital’s board approves capital raise of up to ₹1,315 crore

UGRO Capital will raise funds through the issuance of 49,421,464 fully paid-up unsecured compulsorily convertible debentures, having face value of ₹10 each to the non-promoter allotees by way of a preferential allotment

The Board of Directors of UGRO Capital have approved a capital raise of up to ₹1,315 crore, including via a rights issue of ₹400 crore and a preferential issue of Compulsorily Convertible Debentures (CCDs) of up to ₹915 crore.

Simultaneously, the Board approved an increase in the of the MSME Financing NBFC’s authorised share capital from ₹215 crore to ₹270 crore, per a regulatory filing.

Equity shares of face value ₹10 each by way of rights issue for an amount not exceeding ₹400 crore will be issued to the eligible equity shareholders of the Company.

The company will raise funds through the issuance of 49,421,464 fully paid-up unsecured compulsorily convertible debentures (“CCDs”), having face value of ₹10 each to the non-promoter allotees by way of a preferential allotment for an amount up to ₹914.30 crore at an issue price of ₹185 for each CCD, the filing said.

In the preferential allotment of CCDs, UGRO’s existing long-term shareholder, Samena Capital and its Private Equity Funds currently owning 7.49 per cent of the NBFC has committed up to ₹500 crore and would become a large institutional shareholder, the company said in a statement.

Aregence, a Singapore based public market investor has committed ₹168 crore, this preferential allotment has also received commitment from multiple family office investors, it added.

In addition to preferential allotment, in the proposed rights issue, IFU – the Investment Fund for Developing Countries, a Danish impact investor which is an affiliate of Danish government and existing investor of UGRO owning 16.35 per cent have committed ₹150 crore, UGRO Capital said.

Promoter, Promoter group and Employees have also reaffirmed their commitment by contributing ₹34 crore via CCD and Rights Issue, it added.

Shachindra Nath, Managing Director of UGRO Capital said, “We are confident that this capital raise would build confidence among all stakeholders including public market institutional investors, rating agency and our liability providers.

“The MSME financing market opportunity continues to be the largest among different asset classes and it serves the objective of nation building by providing credit to underserved MSME market and increasing the penetration of employment in our country.”

Published on May 20, 2025