Ugro Capital Limited has informed the Exchange regarding a press release dated May 20, 2025, titled "UGRO CAPITAL LIMITED TO RAISE SIGNIFICANT GROWTH CAPITAL:1. UPTO INR 915 CRORES THROUGH A PREFERENTIAL ISSUE2. OFFERS RIGHTS ISSUE OF INR 400 CRORES TO ITS EXISTING PUBLIC SHARE HOLDERS".
UGROCAP · price
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Ugro Capital, an MSME-focused NBFC, plans to raise up to INR 1,315 Crores in growth capital. This includes a preferential issue of Compulsorily Convertible Debentures (CCDs) worth up to INR 915 Crores at a conversion price of INR 185 per share, plus a rights issue of up to INR 400 Crores for existing public shareholders. Existing shareholder Samena Capital (currently 7.49%) has committed up to INR 500 Crores, Singapore-based Aregence has committed INR 168 Crores, and Danish impact investor IFU (16.35% holder) has committed INR 150 Crores in the rights issue. Promoters and employees will add INR 34 Crores. The company highlights strong recent growth, with AUM nearly doubling from INR 6,081 Cr in FY23 to INR 12,003 Cr in FY25, and PBT rising from INR 84 Cr to INR 203 Cr over the same period. Post-raise, capital adequacy is expected to improve from 19.41% to 29.4%, providing significant headroom for further growth.
The capital raise strengthens the balance sheet and supports aggressive AUM expansion in the MSME lending space. However, the new CCD conversion price of INR 185 is roughly 30% below the earlier INR 264 price for CCDs/warrants issued in June 2024, which may lead to dilution and could weigh on short-term sentiment, though long-term institutional commitment is a positive signal.