Follows May 20 Board approval of up to Rs400 Crore rights issue alongside Rs915 Crore preferential CCD raise
FinTech BizNews Service
Mumbai, May 31, 2025: UGRO Capital, India’s leading DataTech driven MSME Financing NBFC, today announced that its Securities Allotment & Transfer Committee has approved the final terms of its Rights Issue. This decision follows the Board’s May 20, 2025, announcement of a Rs915 Crore preferential CCD issuance and a concurrent proposal to offer up to Rs400 Crore on a rights basis to existing public shareholders.
Under the approved terms, UGRO Capital will offer new equity shares totalling up to Rs400 Crore at a price of Rs162 per share. This pro-rata offering ensures that all existing public shareholders have a fair opportunity to maintain their stake and guard against dilution as the Company continues to expand its balance sheet and deepen its DataTech advantage in serving India’s underserved MSMEs.
Commitments totaling over Rs250 Crore—including Rs150 Crore from IFU (Investment Fund for Developing Countries, Denmark), and Rs34 Crore from the Promoter, Promoter-group and employees in rights issue, underscore strong institutional and management confidence in UGRO’s strategy. The Rights Issue builds on the Company’s recent performance, which saw Assets Under Management grow to Rs12,003 Crore and profit before tax more than double to Rs203 Crore in FY 2024–25, while maintaining a healthy capital adequacy ratio.
Mr. Shachindra Nath, Founder & Managing Director of UGRO Capital said, “At UGRO Capital, we are consistently adding Rs3,000 Crore in AUM year-on-year. Given the strong growth momentum and steady portfolio quality we are witnessing, this capital raise would ensure that our growth trajectory remains unhindered. By offering every shareholder the opportunity to subscribe at Rs162 per share which is in line with the pricing of preferential allotment of CCD we are ensuring that Public Shareholders have the opportunity to participate in the growth journey of the company as well. Our growing AUM and profitability, coupled with a strengthened capital adequacy ratio post this infusion, position UGRO to scale its credit delivery and support the financial needs of small businesses across India.”
InCred Capital is serving as our financial advisor and SNG & Partners as our legal advisor for this Rights Issue as well as our previous equity capital raise.
