UGRO Capital to Raise ₹1,333 Crore Through CCDs and Warrants to Fuel Growth
- ByStartupStory | May 3, 2024
UGRO Capital Ltd has revealed plans to raise a whopping ₹1,333 crore through the issuance of compulsory convertible debentures (CCDs) and warrants. This strategic financial exercise aims to secure the necessary capital for sustained growth over the current and subsequent fiscal years.
The Board of Directors at UGRO Capital, a leading DataTech non-banking financial company (NBFC) specializing in lending to the MSME sector, approved this fundraising initiative at a meeting held on Thursday. The funds will be raised on a preferential basis from both existing and new institutional investors, as well as family offices and their affiliates.
According to the company’s announcement, the capital infusion will be split between ₹275 crore from CCDs and ₹1,058 crore from warrants, each carrying a face value of ₹10. The issue price for both financial instruments has been set at ₹264. CCDs and warrants will be convertible into equity shares at the discretion of the holder within an 18-month period from the date of allotment.
Significantly, Samena Capital, an existing private equity backer of UGRO, has committed ₹500 crore through warrants. Other prominent investors participating in this round include institutional entities like Aregence and notable family offices such as those of Arihant Patni, Ranjan Pai (Manipal Group), and celebrities such as Gauri Khan.
UGRO’s Founder and Managing Director, Shachindra Nath, alongside board members and the management team, have also shown their confidence in the company’s growth trajectory by committing ₹16.25 crore in warrants.
Nath expressed his enthusiasm about this milestone, stating, “The capital raise marks a significant milestone in our journey. We have always wanted to create an institutionally owned, independently supervised and professionally managed FinTech in the listed world.”
This capital raise is UGRO Capital’s third in the last six years. In 2018, following Nath’s acquisition of Chokhani Securities Limited, the company raised ₹914 crore from several prestigious institutional investors. In the following year, the company managed to raise another ₹340.5 crore through various financial instruments, showcasing its continued trust among long-term shareholders and the broader investment community.
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