Ugro Capital, a prominent Non-Bank Financial Company (NBFC) specializing in Micro, Small, and Medium Enterprise (MSME) lending, has successfully completed a significant equity capital raise totaling Rs 1,265 crore through Compulsory Convertible Debentures (CCDs) and warrants.
Ugro Capital secured approval from shareholders on June 1, 2024, for the issuance of CCDs worth Rs 258 crore and warrants amounting to Rs 1,007 crore. These funds are pivotal for Ugro Capital to further its mission of leveraging data technology to provide tailored financial solutions to MSMEs across India.
The CCDs and warrants were subscribed by a consortium of investors, underscoring robust market confidence in Ugro Capital’s business model and growth prospects. Notably, existing private equity investor Samena Capital contributed Rs 500 crore through warrants, joined by institutional investors including Aregence and several prominent Indian family offices.
Under the terms of the subscription, investors are required to pay 25% of the issue price upon allotment, with the remaining balance due within 18 months. This structured payment approach ensures financial discipline while providing immediate capital infusion to fuel Ugro Capital’s expansion initiatives.
Shachindra Nath, Founder and Managing Director of Ugro Capital, expressed gratitude for the strong investor support amidst market fluctuations, emphasizing that the capital raise demonstrates investors’ trust in Ugro Capital’s strategy and operational prowess. He highlighted Ugro Capital’s goal of becoming a preeminent data-driven lending institution, accessible to public market investors while effectively supporting the growth aspirations of MSMEs across India.
With partnerships established with 13 banks and financial institutions, Ugro Capital has facilitated co-lending arrangements amounting to Rs 3,295 crore, supporting over 78,000 MSMEs with customized financial solutions. This comprehensive approach underscores Ugro Capital’s commitment to driving inclusive growth and fostering economic resilience within India’s vibrant MSME sector.
In conclusion, Ugro Capital’s successful capital raise through CCDs and warrants not only bolsters its financial foundation but also reinforces its position as a catalyst for MSME empowerment through innovative and sustainable financial solutions.
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