UGRO Capital plans ₹500 million NCD issuance

UGRO Capital Limited announced that its Investment and Borrowing Committee approved the issuance of up to 5,000 unsecured, rated, subordinated, listed, taxable, redeemable Non-Convertible Debentures (NCDs). These NCDs, each with a face value of ₹1,00,000, will aggregate up to ₹50,00,00,000 and will be issued on a private placement basis. The company plans to list these debentures on BSE Limited.

The NCDs are set to have a tentative tenure of 66 months, with a proposed allotment date of September 25, 2025, and a maturity date of March 25, 2031 (both tentative). An indicative coupon/interest rate of 11.65% p.a.p.m. will be offered, with interest payable monthly.

As a Non-Banking Finance Company, UGRO Capital intends to raise this subordinated debt as Tier II capital. This strategic move aims to further augment the company's capital adequacy, aligning with the Reserve Bank of India's Master Direction for Non-Banking Financial Companies (Scale Based Regulation) Directions, 2023.