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UGRO Capital to Issue Rs 135 Cr NCDs

• ByStartupStory     |    May 21, 2024

Publicly listed small business lending platform, UGRO Capital, has unveiled significant financial decisions aimed at bolstering its capital structure and expanding its technological capabilities. The company has approved the issuance of Non-Convertible Debentures (NCDs) worth up to Rs 135 crore, alongside a strategic acquisition of the financial services platform, MyShubhLife (MSL).

UGRO Capital has greenlit the issuance of up to 3,500 NCDs, each with a face value of Rs 1 lakh, totaling Rs 35 crore on a private placement basis. The tentative date for the allotment of these NCDs is set for July 16, 2024.

Additionally, the company has sanctioned the issuance of up to 10,000 NCDs, also with a face value of Rs 1 lakh each, aggregating up to Rs 100 crore. This issuance includes a green shoe option for an additional 5,000 NCDs, potentially raising an extra Rs 50 crore. The allotment date for these NCDs is tentatively scheduled for June 14, 2024.

Earlier this month, UGRO Capital’s Board approved the acquisition of MyShubhLife (MSL), a Bengaluru-based embedded finance platform, for an enterprise value of Rs 45 crore. The deal, which combines cash and equity, will see MSL operating as a wholly-owned subsidiary of UGRO Capital. This acquisition underscores UGRO Capital’s commitment to leveraging technology to deliver innovative credit solutions to small-scale shopkeepers and distributors nationwide.

Monish Anand, Founder and CEO of MyShubhLife, commented on the acquisition, stating, “Our primary objective is to employ technology as a catalyst for offering contextual and innovative credit products to small-scale shopkeepers and distributors across the nation.”

In a regulatory filing with the BSE, UGRO Capital also announced its Board’s approval for an equity capital raise of Rs 1,332 crore through compulsory convertible debentures. This initiative includes a commitment of Rs 500 crore from Samena Capital, one of UGRO’s existing private equity investors, through warrants. Furthermore, UGRO’s founder, board members, and management team have collectively committed Rs 16.25 crore through warrants.

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