Ugro Capital allots INR 534.64 crore of preferential convertible debentures
UGROCAP · price
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On the reaction day the stock moved 1.8 pts less than Nifty Microcap 250 and 1.6 pts less than its Non Banking Financial Company (NBFC) peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Ugro Capital allotted 28,899,481 compulsory convertible debentures to 77 investors for INR 534.64 crore, below its planned INR 911.40 crore raise. Each debenture, priced at INR 185, converts into one equity share within 18 months. The right issue and Tier 2 capital raise also support the Profectus Capital acquisition.
The raise supports growth and the acquisition, but conversion within 18 months can dilute existing shareholders; lower Samena participation helps limit dilution.