Established in 1993, UGRO Capital Limited is a systemically important, non-deposit-taking NBFC (Non-Banking Financial Company) registered with the Reserve Bank of India (RBI). UGRO Capital NCD IPO reflects the company’s focus on lending, particularly targeting the MSME (Micro, Small, and Medium Enterprises) sector in India.
UGRO Capital offers various loan products tailored for SMEs and MSMEs, concentrating on sectors such as healthcare, education, chemicals, food processing/FMCG, hospitality, electrical appliances, automotive accessories, light engineering, and micro-enterprises.
The company’s services include:
- Prime Secured Loans
- Prime Unsecured Loans
- Micro Enterprise Loans
- Machinery Loans
- Supply Chain Finance
- Partnerships and Alliances
UGRO Capital has structured its clientele into two segments: the Prime and Micro branches. As of June 30, 2024, the company operates 164 branches, categorized into two verticals. Prime branches, situated in metro, tier 1, and tier 2 cities, serve customers with turnovers ranging from ₹1 crore to ₹15 crores. Micro branches, located in tier 3 to tier 6 cities, cater to businesses with turnovers below ₹1 crore, ensuring nationwide coverage.
The company’s total income grew from ₹31,341.59 lakh in 2022 to ₹68,376.28 lakh in 2023, and further to ₹1,08,168.12 lakh in 2024.
As of June 30, 2024, UGRO Capital has collaborated with 15 co-lending partners, 55+ lenders, 45+ fintech companies, 65+ anchors, 70+ original equipment manufacturers (OEMs), and over 650 GRO partners to provide data-driven, customized financial solutions to more than 83,000 MSMEs across India.
UGRO Capital NCD IPO October 2024 Detail
| Issue Open | October 10, 2024 – October 23, 2024 |
| Security Name | UGRO Capital Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 100.00 Crores |
| Issue Size (Oversubscription) | Rs 100.00 Crores |
| Overall Issue Size | Rs 200.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE, NSE |
| Credit Rating | IND A+/Stable by India Ratings & Research Private Limited |
| Tenor | 18, 24 and 30 months |
| Series | Series I to III |
| Payment Frequency | Monthly |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Mitcon Credentia Trusteeship Services Limited |
UGRO Capital NCD IPO Allocation Ratio
| Category | NCD’s Allocated |
|---|---|
| Institutional | 25% |
| Non-Institutional | 25% |
| HNI | 25% |
| Retail | 25% |
UGRO Capital Limited NCD Coupon Rates
| # | Series 1 | Series 2 | Series 3 |
|---|---|---|---|
| Frequency of Interest Payment | Monthly | Monthly | Monthly |
| Nature | Secured | Secured | Secured |
| Tenor | 18 Months | 24 Months | 30 Months |
| Coupon (% per Annum) | 10.15% | 10.25% | 10.4% |
| Effective Yield (% per Annum) | 10.64% | 10.75% | 10.91% |
| Amount on Maturity (In Rs.) | Rs 1,000 | Rs 1,000 | Rs 1,000 |
UGRO Capital NCD IPO Rating
The Non-Convertible Debentures (NCDs) to be issued under this offering have been assigned a rating of “IND A+/Stable” by India Ratings & Research Private Limited, for a total value of ₹20,000 lakh.
Purpose of the Issue
The table below outlines the objectives of the Issue and the amount intended to be funded from the Net Proceeds:
- For onward lending and the company’s financing activities in the regular course of business (including the repayment or refinancing of the company’s existing debts).
- For general corporate purposes.
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