Latest news with #UgroCapital
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Business Standard
6 days ago
- Business
- Business Standard
Jindal Saw, Rallis India, Ugro Capital in focus ahead of June 5 ex-date
Jindal Saw, Rallis India, and Ugro Capital will be in focus today as they will trade ex-date tomorrow, June 5, 2025. In light of the recent announcements regarding corporate action such as dividends, bonus issues, and rights issues, drawing attention from investors. It should be noted that the record date and ex-date for the mentioned stocks are the same. Shares trading ex-date for final dividend Jindal Saw has declared a final dividend of ₹2 per share and Rallis India ₹2.5 per share, according to corporate action data on BSE. These dividends will only be paid to shareholders who own the shares before June 5, 2025, which is the ex-dividend and record date for all four companies. A final dividend is the amount given by a company to its shareholders after the end of its financial year, based on its full-year profits, and approved by shareholders at the Annual General Meeting (AGM). Rights issue Ugro Capital has announced a rights issue involving 2,46,51,744 equity shares with a face value of ₹10 each, amounting to a total issue size of ₹400 crore. The issue price is set at ₹162 per fully paid-up equity share (including a premium of ₹152 per share. The entire issue price will be payable at the time of making the application in the issue. Right entitlement ratio is 50 rights equity shares for every 189 shares held by the eligible shareholders of the company, as on the Record Date. A rights issue is a way for a company to raise additional capital by offering new shares to its existing shareholders, usually at a discounted price, in proportion to their current holdings. The ex-date marks the day a stock starts trading without the eligibility for dividends, bonus shares, stock splits, or rights issues. This means that investors who purchase the stock on or after the ex-date will not be entitled to these benefits. To be eligible, an investor must hold the stock before the ex-date. However, the final list of beneficiaries for dividends, stock splits, or rights issues is prepared by the company based on shareholders recorded at the close of the record date.
Mint
27-05-2025
- Business
- Mint
Why two NBFCs are requesting easing of bond covenants
Two non-bank financiers lending to small businesses have separately approached their bondholders, seeking relaxations on covenants that were part of their original agreements to raise funds. Ugro Capital and Aye Finance raised bonds worth ₹49.28 crore and ₹50 crore, in 2022 and 2024, respectively. The lenders have now requested bondholders to waive certain covenants, and the respective bond trustees have conveyed them to the investors. In finance, covenants are part of agreements that prescribe certain dos and don'ts for issuers of these debt securities. A breach allows bondholders to seek additional interest, among other things. Also Read | Aye Finance, Bluestone Jewellery and GK Energy get SEBI nod to launch IPOs While Ugro Capital has breached its covenant around maintenance of capital to risk weighted assets ratio (CRAR) or capital adequacy ratio, Aye Finance believes it could breach the ceiling on stressed assets. Mint has seen a screenshot of the email detailing Ugro's request, and the text of the email sent on Aye Finance's request. Ugro has assets under management of ₹12,003 core as on 31 March, whereas Aye Finance has assets of ₹4,975 crore as on 30 September (latest available). IDBI Trusteeship Services informed holders of Ugro's bonds maturing in September 2025 that the lender has breached the covenant that it has to maintain a capital adequacy of 20%. In the March quarter, that dropped to 19.41%. Also Read | Stock market gets a warning from bonds and the dollar. Tariff turmoil isn't over 'Request of the company for relaxation of the covenant is presently under process," it wrote to bondholders in an email titled 'Notice for breach of covenants and intimation of the meeting of debenture holders. Ugro informed IDBI Trusteeship on 8 May that Reserve Bank of India (RBI) mandates non-bank lenders to maintain a capital adequacy of at least 15% and the company's capital levels were higher, at 19.41%. 'However, it is just marginally below the contractually agreed CRAR of 20%. As such, CRAR of 19.41% demonstrates a sound capital base and financial health of the company," it said in a statement available on the website of IDBI Trusteeship. Also Read | Indian equities, bonds, currency show resilience amid Trump's tariff tantrum 'We would like to state that in September 2022 when (the) debentures…were issued, the company was in its growth phase and it had agreed to high CRAR of 20%. You are requested to note that for most of the subsequent public as well as private NCD issuances of the company, the company has agreed to a covenant to maintain CRAR of 15% only i.e. minimum CRAR stipulated by RBI," it said. A spokesperson for the lender said in an emailed statement that the company has total borrowing of ₹6,900 crore as of 31 March. 'The bonds referred (to) by you are old bonds with small outstanding of ₹49.28 crore, as per the terms of trust deed, Ugro has requested for the capital adequacy covenant to be relaxed for which the trustee has written to bondholders," the spokesperson said. On 20 May, Ugro said it will raise up to ₹1,315 crore, in a mix of preferential issue of shares and a rights issue. The spokesperson said the proposed capital injection would increase its capital adequacy from 19.4% at present to 29.4%. Meanwhile, Aye Finance—backed by Elevation Capital and Capital G—has preemptively asked for a relaxation. In December, it filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi) to raise ₹1,450 crore in an initial public offering (IPO). As per the bond agreement, Aye Finance is supposed to contain its gross bad loans and write-offs during the past 12 months as a percentage of its total loan book at 8%. According to an email by Catalyst Trusteeship Ltd to bondholders on 15 April, Aye Finance believes that while the ratio mentioned above stands at 6.82% in December, it could exceed the 8% cap in the coming quarter. This is on account of 'increase in write-offs resulting from overall economic/business cycle". "In December 2024, we had proactively advised Catalyst's trusteeship on appx (approximately) 4% of our borrowings through NCDs under their trusteeship, of possibly exceeding the covenanted delinquency ratio," Krishan Gopal, chief financial officer, Aye Finance said in response to an emailed query. 'This reflects our commitment to protect the investments of our bondholders irrespective of the amount invested. Such events are not uncommon in the financial industry," said Gopal, adding that the lender has had no recall of any loan or borrowing on account of breach of covenant, and the company continues to maintain good liquidity positions. He said the company is witnessing a reduction in business stress, and expects normal business conditions as it progresses through this year. Experts said that stress in certain asset classes was leading to covenant breaches among bond issuers. 'Over the past couple of quarters, due to stress in certain asset classes like microfinance, MSME finance, we have seen covenants getting breached for a few issuers, especially those with respect to asset quality," said Anshul Gupta, co-founder of online bond platform Wint Wealth. However, Gupta said that a covenant breach does not necessarily mean that an entity is under significant stress or default is imminent, and investors should assess how significant the breach is and what is the impact on the entity's repayment capabilities. 'If the entity's repayment capabilities aren't impacted, generally, waivers are given. Trustees acting on majority investor directions can either waive or enforce the covenants," said Gupta.
Time of India
20-05-2025
- Business
- Time of India
Ugro Capital plans to raise Rs 1,315 crore via convertible debentures and rights issue of shares
Ugro Capital , a non-banking finance company lending to the small and medium sized business units, has announced raising up to Rs 1315 crore through a combination of preferential allotment of compulsorily convertible debentures (CCDs) and rights issue of shares. The company with assets under management of Rs 12000 crore said that it received board approval for raising up to Rs 915 crore through CCDs and up to Rs 400 crore through rights issue. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo The CCDs will be issued at a conversion price of RS 185 per share. The company's share price fell 1.49% to Rs 189.05 on BSE. The terms of the rights issue would be determined in the next board meeting, in line with terms of preferential allotment, the company said Tuesday. It said that Samena Capital and its private equity funds currently owning 7.49% together committed up to Rs 500 crore and would become a large institutional shareholder of it. IFU – the Investment Fund for Developing Countries, a Danish impact investor, owns 16.35% in Ugro Capital.
Business Standard
28-04-2025
- Business
- Business Standard
Ugro Capital standalone net profit rises 24.04% in the March 2025 quarter
Sales rise 25.05% to Rs 403.18 crore Net profit of Ugro Capital rose 24.04% to Rs 40.55 crore in the quarter ended March 2025 as against Rs 32.69 crore during the previous quarter ended March 2024. Sales rose 25.05% to Rs 403.18 crore in the quarter ended March 2025 as against Rs 322.41 crore during the previous quarter ended March 2024. For the full year,net profit rose 20.60% to Rs 143.93 crore in the year ended March 2025 as against Rs 119.34 crore during the previous year ended March 2024. Sales rose 33.20% to Rs 1395.90 crore in the year ended March 2025 as against Rs 1047.96 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 403.18322.41 25 1395.901047.96 33 OPM % 60.1257.69 - 59.5559.48 - PBDT 70.4665.85 7 249.49214.09 17 PBT 57.2255.95 2 203.11178.76 14 NP 40.5532.69 24 143.93119.34 21
