On October 9, 2025, UGRO Capital shares fell as much as 3%, reaching a day low of ₹181.00 at 1:25 PM after opening at ₹185.45 on BSE. The drop in UGRO Capital shares follows the announcement of fundraising of up to ₹300 crore via issue of listed, rated, senior, secured, transferable, and redeemable Non-Convertible Debentures (NCDs) worth. The fundraising will be executed through private placement, with an option to retain oversubscription of up to ₹150 crore.
The issuance will be structured in three tranches—Series I, Series II, and Series III—each carrying a base issue size of ₹100 crore and a green shoe option of ₹50 crore. The NCDs, denominated in Indian rupees and having a face value of ₹10,000 each, will be listed on BSE Limited.
The proposed allotment date is October 16, 2025. The maturity dates for the three series are as follows:
These NCDs will offer monthly interest payouts at competitive coupon rates:
The instruments will be secured by a first-ranking, exclusive, and continuing charge via hypothecation over UGRO Capital’s present and future loan receivables. A minimum-security cover of 1.10x (times) the outstanding principal and accrued interest will be maintained.
In the event of any delay in the payment of principal or interest, a penalty interest rate of the applicable coupon plus 2% per annum will be levied. Redemption will take place at the end of each respective tenure.
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In Q1 FY26, UGRO Capital made significant strides in its strategic growth initiatives, most notably with the announced acquisition of M/s Profectus Capital Private Limited for ₹1,400 crore, pending RBI approval. The company continued to strengthen its Emerging Market (EM) channel, expanding to 286 branches as of June 30, 2025, with full rollout expected by September. UGRO also advanced its capital position with an equity raise of ₹1,300 crore, including a completed rights issue of ₹381 crore and a proposed preferential issue of ₹911 crore, currently awaiting exchange approval.
Its embedded finance platform, MSL, demonstrated strong momentum by surpassing ₹1,000 crore in AUM. Asset quality remained stable, with GNPA held at 2.5% and provision coverage at 47%. While net loan originations stood at ₹1,599 crore, down from ₹2,436 crore in Q4 FY25. This was a strategic outcome of tightened underwriting practices, reflecting a focus on quality over volume.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Oct 9, 2025, 1:37 PM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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