UGRO Capital fixes Rs 162 per share for Rs 400-cr rights issue

UGRO Capital, a data-tech driven MSME financing NBFC, on Monday said it has fixed a price of Rs 162 per share for its Rs 400-crore rights issue.

The announcement comes after the company's Securities Allotment & Transfer Committee approved the final terms of its rights issue.

Under the approved terms, UGRO Capital will offer new equity shares totalling up to Rs 400 crore at a price of Rs 162 per share, according to a statement issued by the company.

This pro-rata offering ensures that all existing public shareholders have a fair opportunity to maintain their stake and guard against dilution as the company continues to expand its balance sheet and deepen its data-tech advantage in serving India's underserved MSMEs, it added.

The company has fixed June 5 as the record date for eligibility. The issue will remain open from June 13 to June 20, with a possible extension of up to 30 days. As of now, UGRO Capital has 9.32 crore equity shares outstanding.

UGRO Capital said the rights issue builds on the company's recent performance, which saw assets under management growing to Rs 12,003 crore and profit before tax more than double to Rs 203 crore in FY2024-25, while maintaining a healthy capital adequacy ratio.

"At UGRO Capital, we are consistently adding Rs 3,000 crore in AUM year-on-year. Given the strong growth momentum and steady portfolio quality we are witnessing, this capital raise would ensure that our growth trajectory remains unhindered... Our growing AUM and profitability, coupled with a strengthened capital adequacy ratio post this infusion, position UGRO to scale its credit delivery and support the financial needs of small businesses across India," Shachindra Nath, Founder & Managing Director of UGRO Capital, said.

The company said commitments totalling over Rs 250 crore, including Rs 150 crore from IFU (Investment Fund for Developing Countries, Denmark), and Rs 34 crore from the promoter, promoter-group and employees, are already in place in the rights issue.

On May 20, UGRO Capital announced a Rs 915 crore preferential compulsory convertible debentures (CCD) issuance and a concurrent proposal to offer up to Rs 400 crore on a rights basis to existing public shareholders. PTI