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UGRO Capital announces Rs 400 crore rights issue at Rs 162 per share

UGRO Capital on Saturday announced a Rs 400 crore rights issue at Rs 162 per share, the company said in a press release. The board had on May 20 announced a Rs 915 crore of preferential compulsorily convertible debentures (CCD) issuance and a concurrent proposal to offer up to Rs 400 crore on a rights basis to existing public shareholders. Under the approved terms, this pro-rata offering ensures that all existing public shareholders have a fair opportunity to maintain their stake and guard against dilution as the company continues to expand its balance sheet and deepen its DataTech advantage in serving India's underserved micro, small and medium enterprises (MSMEs), the press release said. Shachindra Nath, founder and managing director of UGRO Capital, said, 'We are consistently adding Rs 3,000 crore in AUM (asset under management) year-on-year. This capital raise would ensure that our growth trajectory remains unhindered. Our growing AUM and profitability, coupled with a strengthened capital adequacy ratio post this infusion, position UGRO to scale its credit delivery and support the financial needs of small businesses across India.' The rights issue builds on the company's recent performance, which saw assets under management grow to Rs 12,003 crore and profit before tax more than double to Rs 203 crore in the financial year 2024-25 (FY25), while maintaining a healthy capital adequacy ratio. InCred Capital and SNG & Partners are serving as financial advisor and legal advisor, respectively, for this rights issue as well as for equity capital raise. In addition to preferential allotment, in the proposed rights issue, IFU, the investment fund for developing countries, a Danish impact investor which is an affiliate of Danish government and existing investor of UGRO owning 16.35 per cent, have committed Rs 150 crore, UGRO Capital said. Promoter, promoter group and employees have also reaffirmed their commitment by contributing Rs 34 crore via CCD and rights issue, it added.