Ugro Capital has announced its plans to raise to Rs 135 crore through the issuance of non-convertible debentures (NCDs).
The Board of Directors approved the issuance of up to 3,500 senior, secured, rated, listed, redeemable, transferable NCDs, each with a face value of Rs 1,00,000, totaling an aggregate face value of Rs 35 crore. These debentures will be issued in dematerialised form on a private placement basis.
Additionally, the board sanctioned the issuance of NCDs aggregating up to Rs 100 crore. This includes up to 10,000 listed, rated, senior, secured, taxable, redeemable NCDs with a face value of Rs 1,00,000 each, aggregating to Rs 100 crore, and a green shoe option of up to 5,000 NCDs, each with a face value of Rs 1,00,000, totaling up to Rs 50 crore, also in dematerialized form on a private placement basis.
Separately, Ugro Capital has recently approved the acquisition of the financial services platform MyShubhLife for an enterprise value of Rs 45 crore in a cash and equity deal. “The board of directors has approved the acquisition of MyShubhLife, a prominent embedded finance fintech platform headquartered in Bangalore, for an enterprise value of Rs 45 crore through a combination of 64:36 equity cash transaction, thereby making it a wholly owned subsidiary,” Ugro Capital stated.
The company’s board has also approved raising equity capital of Rs 1,322 crore through compulsory convertible debentures (CCD) and warrants. This capital raise has garnered a strong commitment from Samena Capital, an existing private equity investor in the company, which has committed Rs 500 crore through warrants.
On the technical front, Ugro Capital’s stock is trading higher than its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs). The 14-day relative strength index (RSI) stands at 55.04, indicating a neutral position as a value below 30 is considered oversold, and above 70 is considered overbought.
The stock has a price-to-earnings (P/E) ratio of 455.40 and a price-to-book (P/B) value of 1.03, with earnings per share (EPS) at 0.62 and a return on equity of 0.23. Ugro Capital, a datatech non-banking financial company (NBFC) focused on MSME lending, saw its stock last trade up 2.12 percent at Rs 282.35.
These developments reflect Ugro Capital’s strategic efforts to enhance its financial position and expand its capabilities in the financial services sector.
