UGRO Capital Limited, a leading datatech NBFC, has announced the successful completion of its equity capital raise and the allotment of Compulsory Convertible Debentures (CCDs) and warrants worth Rs 1,265 crore. The company’s Board of Directors had approved an equity capital raise of Rs 1,332.66 crore during a board meeting on 2nd May 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, according to the company. All investors, except the ones who became ineligible for regulatory reasons, invested full money in UGRO.
The company allotted CCDs worth Rs 258 crore and warrants worth Rs 1,007 crore, with strong backing from existing private equity investor Samena Capital, which committed Rs 500 crore 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.
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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 crore net worth listed NBFC, ‘Chokhani Securities Limited’, and raised institutional equity capital of Rs 914 crore 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 Rs 340.5 crore last year, including Rs 240 crore from Denmark Government-owned IFU via its Danish Sustainable Development Goals Investment Fund K/S, and Rs 100.5 crore from other institutional shareholders through a Qualified Institutions Placement (QIP).
UGRO Capital, since its inception, has raised total equity capital commitment of Rs 2,700 crore, has an outstanding total debt of Rs 4,643 crore from domestic and global institution, and has partnered with 13 banks and other financial institutions for doing Rs 3,295 crore of co-lending. It has extended data-driven customized finance solutions to over 78,000 MSMEs across India.
