UGROCAPNSEUgro Capital LimitedMediumNeutral
Announced Fri, 27 Mar · 17:05 IST

Intimation of allotment of NCDs on private placement basis

Ncd High Yield 12pctFund Raising View source PDF

UGROCAP · price

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Price reaction · full curve 14 horizons · vs prior close
-2.1%1-day move
₹89.91
prior close
₹89.00
base price
After-mkt
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AI summary

Ugro Capital has allotted two series of Non-Convertible Debentures (NCDs) on private placement basis, totalling around Rs 181.10 crore. Series I comprises 4,610 subordinated, unsecured NCDs of Rs 1 lakh each, raising Rs 46.10 crore, with a long tenure of about 72 months (maturity April 2032) and a high fixed coupon of 13.25% per annum paid semi-annually. Series II comprises 1,35,000 senior, secured NCDs of Rs 10,000 each, raising Rs 135 crore, with a shorter tenure of about 12 months (maturity April 2027) and a coupon of 9.50% per annum paid monthly, backed by a pledge of equity shares. Both series are proposed to be listed on BSE. The funds will likely support the company's lending operations and general borrowing needs.

Likely market impact

The NCD raise strengthens Ugro Capital's capital base, with the high-yield 13.25% subordinated NCDs providing Tier-II capital support while the lower-cost 9.50% secured NCDs add short-term funding. The relatively expensive Series I borrowing may modestly pressure margins, but overall this is a routine debt-raising step for an NBFC and is broadly neutral to mildly positive for shareholders.