Latest news with #CCDs
Entrepreneur
21-05-2025
- Business
- Entrepreneur
UGRO Capital Approves INR 915 Crore Capital Raise via Compulsorily Convertible Debentures
The new CCDs will be issued at a conversion price of INR 185 per share, significantly lower than the INR 264 conversion price set during UGRO's previous capital raise in June 2024, when the company secured INR 258 crore via CCDs and INR 1,007 crore through warrants. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. UGRO Capital, a DataTech-driven NBFC focused on MSME financing, has announced a preferential issue of Compulsorily Convertible Debentures (CCDs) amounting to INR 915 crore, following approval by its Board of Directors. The move is aimed at accelerating the company's growth trajectory and expanding its lending capabilities in the underserved MSME segment. The announcement was made via a press release. The new CCDs will be issued at a conversion price of INR 185 per share, significantly lower than the INR 264 conversion price set during UGRO's previous capital raise in June 2024, when the company secured INR 258 crore via CCDs and INR 1,007 crore through warrants. The latest infusion is expected to lift UGRO Capital's capital adequacy ratio from 19.41 per cent at the close of FY25 to 29.4 per cent, providing a substantial buffer to support its expansion plans. The company's assets under management (AUM) doubled from INR 6,081 crore in FY23 to INR 12,003 crore in FY25. During the same period, profit before tax surged from INR 84 crore to INR 203 crore, while return on assets (ROA) improved from 1.3 per cent to 2.9 per cent (excluding Emerging Market branch expansion impact). Shachindra Nath, managing director of UGRO Capital, said, "UGRO has delivered strong operating performance. I am thankful for all of the existing shareholders and warrant holders for committing a significant amount of capital to UGRO which would ensure that UGRO continues on its growth journey." The preferential allotment has drawn major commitments from institutional investors. Samena Capital and its private equity funds, which already hold a 7.49 per cent stake in UGRO, have committed up to INR 500 crore, positioning them as a leading institutional shareholder. Singapore-based public market investor Aregence has committed INR 168 crore, while several prominent family offices have also participated. To ensure equitable participation for retail investors, UGRO's board has also approved a rights issue of up to INR 400 crore. The terms will be finalized in an upcoming board meeting. IFU, the Danish Government's impact fund and an existing investor with a 16.35 per cent stake, has pledged INR 150 crore toward the rights Issue. Promoters and employees have jointly committed INR 34 crore via both CCDs and the rights Issue.
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Business Standard
20-05-2025
- Business
- Business Standard
UGRO Capital to raise up to Rs 915 crore through preferential CCD issue
UGRO Capital's board approves Rs 915 crore capital raise via CCDs; capital adequacy to improve from 19.41% to 29.4%, with rights issue of Rs 400 crore also planned Aathira Varier Mumbai Listen to This Article UGRO Capital on Tuesday said its board has approved raising up to Rs 915 crore through a preferential issue of compulsorily convertible debentures (CCDs). Post the capital raise, UGRO's capital adequacy is expected to improve to 29.4 per cent from 19.41 per cent at the end of FY25, providing significant headroom for growth. In June 2024, UGRO Capital had raised capital commitments of Rs 258 crore through CCDs and Rs 1,007 crore through warrants, totalling Rs 1,265 crore. These instruments were issued at a conversion price of Rs 264 per share. The new CCDs will be issued at
Time of India
19-05-2025
- Business
- Time of India
RBI moots 15% cap on banks, NBFCs' investments in AIFs
Mumbai: India's banking regulator on Monday proposed capping the exposure of regulated entities (RE), such as banks and non-bank lenders, into schemes of Alternative Investment Funds (AIF) at 15% of the total combined investment by all lenders. Also, the proposals allow REs to invest up to 5% of the corpus of an AIF without any curbs, while 10% of the scheme's corpus will act as an upper limit. Despite the proposed caps on investments, industry experts said the draft norms published by the Reserve Bank of India are less restrictive than when it disallowed such exposures 18 months ago on evergeering risks. "Proposing unrestricted 5% investment by a RE in Cat 1 and 2 AIFs, without impacting such an AIF's choice of underlying investment instrument or kind of portfolio entity and without any requirement of potential provisioning for such Res, is a step in the right direction," said Tejesh Chitlangi, Joint MD IC Universal Legal. The norms also said if an RE's investment exceeds 5% and the AIF holds downstream debt in a company that also owes money to the same RE, then the bank or NBFC concerned must make a 100% provision for its share of the exposure. Against this, in December 2023, RBI had prohibited REs from investing in AIF schemes that had direct or indirect downstream investments in companies that owed them money. If such exposure existed, REs were required to exit within 30 days or make a 100% provision. This reduced investments by banks and NBFCs into AIFs. This was done to address concerns of possible evergreening through this route. On Monday, RBI proposed that downstream exposures, which earlier only excluded equity shares, will now also exclude compulsorily convertible preference shares (CCPS), or compulsorily convertible debentures (CCDs). Also, proposing to allow REs to invest beyond 5% and up to 10% in AIFs with equity-linked instruments like CCPS and CCDs without triggering provisioning norms is seen as a positive move, industry experts say, although some argued against the 15% overall cap. "However, the new proposed introduction of an overall ceiling of 15% of all RE investments taken together in an AIF needs to be liberalised as it will be too restrictive if implemented," Chitlangi said.
Time of India
13-05-2025
- Business
- Time of India
Tikona Infinet settles CCD dues with L&T Finance, moves to exit insolvency process
Mumbai-based Tikona Infinet Pvt Ltd moves to settle its dues related to Series 'E' Compulsorily Convertible Debentures (CCDs) with L&T Finance Ltd, bringing closure to the insolvency resolution process against the broadband services provider. The process for formal withdrawal of the insolvency petition from the NCLT is currently underway, said the company in its release. 'It was a dispute amongst the shareholders about Coupon Rights,' said Prakash Bajpai, founder and chief executive of Tikona Infinet , in a statement. 'I am glad to inform that a settlement agreement has been executed already, which will settle all disputes amicably between LTF Limited and the other majority shareholders. A withdrawal application to NCLT is under process,' he added. The Mumbai bench of the National Company Law Tribunal (NCLT) had admitted Tikona Infinet under the Corporate Insolvency Resolution Process (CIRP) in an application filed by L&T Finance with the observation that even though certain CCDs are structured for conversion into equity, they may still be considered financial debt if the coupon payment obligation is absolute. L&T Finance had approached the tribunal alleging a default of Rs 116.01 crore in unpaid coupon payments on Series 'E' Compulsorily Convertible Debentures (CCDs) by the company. In the case, Tikona Infinet had maintained that the instruments in question were classified as equity securities and did not qualify as financial debt under the Insolvency and Bankruptcy Code. The company had also argued that the alleged coupon entitlements were subject to the availability of distributable cash and were like dividends, not debt. L&T Finance had argued that the broadband internet provider defaulted on its dues in August 2024. The lender also argued that the company failed to honour the coupon payments on Series 'E' CCDs held by the petitioner. In this case, senior counsel Mustafa Doctor, along with Murtaza Kachwalla of Argus Partners, appeared for L&T Finance, whereas Tikona Infinet was represented by advocate Shyam Kapadia and Munaf Virjee of law firm AMR Law.
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Business Standard
12-05-2025
- Business
- Business Standard
Tikona Infinet resolves dispute regarding debt payments with L&T Finance
Internet service provider Tikona Infinet on Monday announced that they have entered into a definitive settlement agreement with L&T Finance Limited to resolve the dispute on debt bonds. The announcement came after the National Company Law Tribunal (NCLT), Mumbai Bench, earlier admitted an application filed by L&T Finance against Tikona Infinet, citing default on coupon payments for CCDs. Tikona Infinet said the pact was signed on May 10, bringing closure to a previously reported shareholder matter related to Series 'E' Compulsorily Convertible Debentures (CCDs), following which L&T Finance has started the process to withdraw its application. "It was a dispute amongst the shareholders about Coupon Rights. I am glad to inform you that a settlement agreement has already been executed, which will settle all disputes amicably between LTF Limited and the other majority shareholders. A withdrawal application to the NCLT is under process," Tikona Infinet founder and CEO Prakash Bajpai said. An email query sent to L&T Finance elicited no immediate reply. The tribunal had observed that even though certain CCDs are structured for conversion into equity, they may still be considered financial debt if the coupon payment obligation is absolute, Tikona Infinet said in a statement. Tikona Infinet had maintained in its legal filings that the instruments in question were classified as equity securities and did not qualify as financial debt under the Insolvency and Bankruptcy Code. The company further argued that the alleged coupon entitlements were subject to the availability of distributable cash and were in the nature of dividends, not debt. Following internal discussions among all relevant parties and stakeholders, both sides have reached a mutually agreeable settlement. The process for formal withdrawal of the insolvency petition from the NCLT is currently underway, the statement said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
