Ugro Capital approves raising up to Rs 135 crore through non-convertible debentures

Ugro Capital has announced its plans to raise up to Rs 135 crore through the issuance of non-convertible debentures (NCDs).

The company's Board of Directors approved the issuance during a meeting held on May 18, 2024.

Specifically, Ugro Capital will issue up to 3,500 Senior, Secured, Rated, Listed, Redeemable, Transferable NCDs, each with a face value of Rs 1 lakh, totaling Rs 35 crore.

Additionally, they approved issuing up to 10,000 similar NCDs with a face value of Rs 1 lakh each, aggregating up to Rs 100 crore, which includes a green shoe option of up to 5,000 NCDs worth Rs 50 crore. These debentures will be issued in dematerialized form on a private placement basis.

When will the debentures be allotted?

The tentative dates for the allotment of these NCDs have been set. For the Rs 35 crore issuance, the expected allotment date is July 16, 2024. Meanwhile, the NCDs worth Rs 100 crore, including the green shoe option, are scheduled for allotment on June 14, 2024.

These dates are crucial for investors looking to participate in the private placement.

Recent acquisitions and capital raises by Ugro Capital

In addition to the NCD issuance, Ugro Capital has recently approved the acquisition of MyShubhLife, a financial services platform, for an enterprise value of Rs 45 crore. This acquisition will be completed through a combination of 64% equity and 36% cash, making MyShubhLife a wholly-owned subsidiary of Ugro Capital.

Monish Anand, Founder and CEO of MyShubhLife, said, "Our primary objective is to employ technology as a catalyst for offering contextual and innovative credit products to small-scale shopkeepers and distributors across the nation."

Ugro Capital has also approved raising Rs 1,322 crore through Compulsory Convertible Debentures (CCD) and warrants. This capital raise includes a commitment of Rs 500 crore from Samena Capital, an existing private equity investor, through warrants.

Additionally, the company's founder, board members, and management team have committed Rs 16.25 crore through warrants.

What does Ugro Capital do?

Ugro Capital, a data tech non-banking financial company (NBFC), is focused on lending to micro, small, and medium enterprises (MSMEs). By leveraging technology, Ugro aims to provide innovative and context-specific credit products to underserved sectors.