Non-banking company UGRO Capital on Monday (June 2) 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 ₹915-crore preferential CCD (compulsory convertible debenture) issuance and a concurrent proposal to offer up to ₹400 crore on a rights basis to existing public shareholders.
Under the approved terms, UGRO Capital will offer new equity shares totalling up to ₹400 crore at a price of ₹162 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 totalling over ₹250 crore — including ₹150 crore from IFU (Investment Fund for Developing Countries, Denmark), and ₹34 crore from the promoter, promoter-group and employees in the rights issue.
Also Read: Adani Ports will raise a billion dollars more after its largest ever bond issue in India
The rights issue builds on the company’s recent performance, which saw assets under management grow to ₹12,003 crore and profit before tax more than double to ₹203 crore in FY2024-25, while maintaining a healthy capital adequacy ratio.
Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “At UGRO Capital, we are consistently adding ₹3,000 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 ₹162 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,” he added.
InCred Capital is serving as the financial advisor, and SNG & Partners is the legal advisor for this rights issue.
Also Read: Snabbit raises $19 million in Series B round, plans to enter 200 micro-markets in the next 9 months
(Edited by : Shoma Bhattacharjee)
