UGRO Capital Shares Slip Despite NCD Fundraising Approval by Board

UGRO Capital shares declined as much as 4% on Monday, April 23, 2026, hitting an intraday low of ₹88.50 at around 10:28 AM on the BSE Limited, after opening at ₹95.95. The decline came after the company announced plans to raise funds through non-convertible debentures (NCDs), approved by its Investment and Borrowing Committee.

The board has cleared the issuance of NCDs aggregating up to ₹205 crore through private placement, to be executed in one or more tranches. The fundraising is divided into two components, secured and unsecured instruments.

NCDs First Tranche

The first tranche includes up to 1,05,000 listed, rated, senior, secured, transferable, and redeemable NCDs with a face value of ₹10,000 each.

A green shoe option of up to 50,000 additional NCDs has been included, taking the total potential issue size to ₹155 crore. These NCDs will have a tenure of 12 months and 22 days, with a tentative allotment date of March 27, 2026, and maturity on April 18, 2027.

They offer a coupon rate of 9.50% per annum, payable monthly, and will be redeemed at par upon maturity. To secure the issuance, the company will create a first-ranking pledge over equity shares along with hypothecation of receivables in favour of the debenture trustee.

NCDs Second Tranche Structure

The second tranche comprises up to 4,000 unsecured, rated, subordinated, listed, and taxable NCDs with a face value of ₹1,00,000 each.

With a green shoe option of 1,000 additional NCDs, the total issue size could reach ₹50 crore. These instruments will carry a longer tenure of up to 72 months, maturing on March 27, 2032. They offer a higher coupon rate of 13.25% per annum, payable semi-annually. Redemption will be staggered 50% at the end of 66 months and the remaining 50% at 72 months.

Listing and Default Clause

Both categories of NCDs will be issued via private placement and are proposed to be listed on the BSE.

In case of any delay or default in payments, an additional interest of 2% per annum over the coupon rate will be charged on the outstanding amount for both instruments.

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