Ugro Capital Limited, a prominent Non-Banking Financial Company (NBFC) focused on MSME lending, has launched its public issue of secured, rated, listed, redeemable, non-convertible debentures (Secured NCDs). The issue opens on April 3, 2025, and will close on April 21, 2025, with an option for early closure subject to the compliance with Regulation 33A of SEBI’s NCS Regulations.

The Base Issue Size of the NCDs is ₹10,000 lakh, with a Green Shoe Option to retain oversubscription up to ₹10,000 lakh, bringing the total potential size of the offering to ₹20,000 lakh. These NCDs have been rated “IND A+/Stable” by India Ratings and Research Private Limited, which signifies a high degree of safety regarding the timely servicing of financial obligations.

The effective annualized yield for investors in this public issue is up to 11.01% per annum, making it an attractive opportunity for those looking for stable returns on fixed income instruments. The issue includes various tenors of 18, 24, 30, and 42 months, with coupon rates ranging from 10.00% to 10.50% per annum, depending on the series chosen. For Series I, II, and III, the yield stands at 10.47%, while Series IV and V offer 10.75% and 11.01% respectively.

The NCDs will be listed on BSE and NSE, ensuring liquidity and the opportunity to trade these debentures post-issue. Investors can subscribe to the issue with a minimum application of ₹10,000 (10 NCDs) and in multiples thereafter. The securities are set to be redeemed at ₹1000 per NCD at maturity.

The proceeds from the issue will be utilized primarily for onward lending and financing activities related to the company's core business, which includes the repayment/refinancing of existing debts. At least 75% of the net proceeds will be directed towards these purposes, while up to 25% will be allocated to general corporate purposes.

As of December 31, 2024, UGRO Capital’s Capital Adequacy Ratio (CRAR) stood at a strong 21.52%, reflecting its healthy financial standing. Its Assets Under Management (AUM) have grown from ₹2,96,890.60 lakh as of March 31, 2022, to ₹9,04,705.74 lakh as of March 31, 2024, further indicating strong business growth. UGRO Capital operates from 23 prime branches and 201 emerging market branches, catering to more than 1,35,000 customers, with an average ticket size of ₹11.37 lakh.

This public issue presents a highly attractive fixed-income investment opportunity, especially with the added benefit of being rated "IND A+/Stable". Investors are advised to carefully review the Prospectus before making any investment decisions, noting the risk factors outlined therein.

The Lead Manager to this issue is Tipsons Consultancy Services Private Limited, and the Registrar is MUFG Intime India Private Limited. MITCON Credentia Trusteeship Services Limited acts as the debenture trustee. Investors interested in participating in this offering can find the Prospectus on the company’s website, as well as the websites of BSE, NSE, and other associated platforms.

UGRO Capital’s public issue of secured NCDs offers an appealing fixed-income option with competitive yields for both individual and institutional investors, backed by the company's strong market position in MSME lending.

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