UGRO Capital Limited (NSE: UGROCAP | BSE: 511742), a leading DataTech NBFC focused on MSME lending, announced the successful completion of its equity capital raise and the allotment of Compulsory Convertible Debentures (CCD) and warrants worth INR 1,265 Crore. The Company’s Board of Directors had approved an equity capital raise of INR 1,332.66 Crore during a board meeting on May 2, 2024, coinciding with the peak of the Indian general elections.
UGRO Capital received Shareholders’ approval on 1st June 2024, a period filled with the uncertainty surrounding the election results and the resultant market fluctuations. However, investor commitment in UGRO remained robust. All investors, except the ones who became ineligible for regulatory reasons, invested full money in UGRO. The company successfully allotted CCDs worth INR 258 crores and warrants worth INR 1,007 crores, with strong backing from existing private equity investor Samena Capital, which committed INR 500 Crores through Warrants. Other significant commitments came from institutional investors such as Aregence and several of India’s marquee family offices. UGRO’s founder, board members, and management team also subscribed to the Warrants issue.
These warrants can be exercised within 18 months from the date of allotment, with subscribers paying 25% of the issue price now and the remaining amount payable 18 months later. This capital raise marks the third for UGRO Capital.
Shachindra Nath, Founder and Managing Director of UGRO Capital, said “Securing this capital raise amidst market ups and downs speaks volumes about the sheer trust our investors have in us. Our aim has always been to build a DataTech driven lending institution that is institutionally owned, independently supervised, and professionally managed, accessible to public market investors. We’re now closer to our goal of helping all small businesses in India, and I have an overwhelming sense of gratitude towards all our investors, partners, and the entire UGRO team for making it happen.”
In 2018, Shachindra Nath envisaged and executed the concept of India’s first listed start-up by acquiring a 40 Crores net worth listed NBFC, ‘Chokhani Securities Limited’, and raised institutional equity capital of INR 914 Crores from investors including TPG - NewQuest, PAG, ADV Capital, Samena Capital, and other domestic family offices and public market investors. Continuing its strategic expansion, UGRO Capital raised INR 340.5 Crores last year, including INR 240 Crores from Denmark Government owned IFU via its Danish Sustainable Development Goals Investment Fund K/S, and INR 100.5 Crores from other institutional shareholders through a Qualified Institutions Placement (QIP).
UGRO Capital, since its inception, has raised total equity capital commitment of INR 2,700 Crores, has an outstanding total debt of INR 4,643 Crores from domestic and global institution, and has partnered with 13 Banks and other Financial Institution for doing 3,295 Crores of Co-Lending. It has extended data-driven customized finance solutions to over 78,000 MSMEs across India.
