UGROCAPNSEUgro Capital LimitedMediumNeutral
Announced Sat, 21 Mar · 15:59 IST

Intimation of issuance 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
-3.9%1-day move
₹94.99
prior close
₹93.65
base price
After-mkt
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-3.7-3.8-3.1-3.3-3.9-2.4-5.3-15.5-7.4-6.6+20.0+13.8+4.9+2.1
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AI summary

Ugro Capital's Investment and Borrowing Committee has approved the issuance of Non-Convertible Debentures aggregating up to INR 205 Crores on a private placement basis, to be listed on BSE. The issue is split into two tranches: (1) Senior, Secured, Listed NCDs of up to INR 155 Crores (face value INR 10,000, tenure ~12 months 22 days, coupon 9.50% paid monthly, secured by pledged shares and receivables); and (2) Unsecured, Subordinated, Listed NCDs of up to INR 50 Crores (face value INR 1,00,000, tenure up to 72 months, coupon 13.25% paid semi-annually). Both tranches include a green-shoe option for oversubscription. Tentative allotment date is 27 March 2026.

Likely market impact

The company is raising fresh debt of up to INR 205 Crores, which will strengthen its lending capacity. While the senior tranche at 9.50% is competitively priced, the subordinated tranche carries a high 13.25% coupon, reflecting the riskier, unsecured nature of those debentures. Existing shareholders may see mild dilution of equity concerns avoided (since these are NCDs, not equity), but higher future interest outflows could weigh on profitability if lending yields do not compensate.