UGRO Capital Ltd, a leading MSME-focused lender, has announced plans to raise up to ₹300 crore through the issue of listed, rated, senior, secured, transferable, and redeemable Non-Convertible Debentures (NCDs). The fundraising will be executed via private placement, with an oversubscription (green shoe) option of up to ₹150 crore, allowing a total potential raise of ₹450 crore.
Fundraising Structure and Details
The issue will be conducted in three tranches — Series I, II, and III, each carrying a base issue size of ₹100 crore and a green shoe option of ₹50 crore.
Key Terms of the Issue:
| Series | Maturity Date | Coupon Rate (p.a.) | Interest Payout | Face Value |
| Series I | January 15, 2027 | 9.50% | Monthly | ₹10,000 |
| Series II | October 15, 2027 | 9.75% | Monthly | ₹10,000 |
| Series III | April 15, 2029 | 9.99% | Monthly | ₹10,000 |
The proposed allotment date for all three tranches is October 16, 2025, and the NCDs will be listed on BSE Limited.
The instruments will be secured by a first-ranking, exclusive charge through hypothecation over UGRO Capital’s present and future loan receivables. A minimum security cover of 1.10x of the outstanding principal and accrued interest will be maintained.
In case of payment delays, a penalty interest rate of the applicable coupon plus 2% per annum will apply. Redemption will occur upon maturity of each respective series.
Strategic and Financial Highlights – Q1 FY26
UGRO Capital demonstrated strong progress in Q1 FY26, advancing both strategic and financial initiatives:
- Profectus Capital Acquisition: Announced plans to acquire M/s Profectus Capital Pvt. Ltd. for ₹1,400 crore, subject to RBI approval.
- Network Expansion: Strengthened its Emerging Market (EM) channel, reaching 286 branches as of June 30, 2025, with full rollout expected by September.
- Capital Strengthening: Raised ₹1,300 crore in equity, including a ₹381 crore rights issue and a proposed ₹911 crore preferential issue, pending exchange approval.
- Embedded Finance Growth: The MSL platform crossed ₹1,000 crore in AUM, reflecting growing traction in digital lending.
- Asset Quality: Maintained stable metrics with Gross NPA at 2.5% and provision coverage at 47%.
- Loan Originations: Recorded ₹1,599 crore in new loan originations, compared to ₹2,436 crore in Q4 FY25 — a result of the company’s strategic focus on quality lending over volume growth.
Summary
UGRO Capital’s planned ₹300 crore NCD issue (expandable to ₹450 crore) underscores its continued focus on strengthening liquidity and diversifying funding sources. Offering competitive yields up to 9.99%, the secured NCDs provide investors with attractive fixed-income options. Combined with the company’s robust capital-raising initiatives, disciplined asset quality, and expansion momentum, UGRO Capital is well-positioned to drive sustainable MSME lending growth in the coming quarters.
Disclaimer:
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