Nath aims to build DataTech driven lending institution
Mumbai’s UGRO Capital Limited (NSE: UGROCAP) (BSE: 511742) says the completion of its equity capital raise and the allotment of Compulsory Convertible Debentures (CCD) and warrants worth Rs.1,265 crore is to help small businesses in India.
The Board of Directors had approved an equity capital raise of Rs.1,332.66 crore on 2nd May 2024 for the company, rated as a leading DataTech NBFC focused on MSME lending http://www.ugrocapital.com/ .
“Securing this capital raise amidst market ups and downs speaks volumes about the sheer trust our investors have in us,” said Shachindra Nath, Founder and Managing Director of UGRO Capital https://www.bseindia.com/ .
“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 https://www.nseindia.com/ .
“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 https://sbi.com.in/ .”
In 2018, Nath envisaged and executed the concept of India’s first listed start-up by acquiring a Rs.40 crores net worth listed NBFC, ‘Chokhani Securities Limited’, and raised institutional equity capital of Rs.914 crores from investors including TPG – NewQuest, PAG, ADV Capital https://advpartners.com/ , Samena Capital https://www.samenacapital.com/ , and other domestic family offices and public market investors https://www.ibef.org/ .
Continuing its strategic expansion, UGRO Capital raised Rs.340.5 crores last year, including Rs.240 crores from Denmark Government owned IFU https://www.ifu.dk/en/about-ifu/ via its Danish Sustainable Development Goals Investment Fund K/S, and Rs.100.5 crores from other institutional shareholders through a Qualified Institutions Placement (QIP).
In the latest round for fund raising, the company successfully allotted CCDs worth Rs.258 crores and warrants worth Rs.1,007 crores, with strong backing from existing private equity investor Samena Capital, which committed Rs.500 crores through Warrants. Other significant commitments came from institutional investors such as Aregence https://www.aregence.com/ and several of India’s marquee family offices. UGRO’s founder, board members, and management team also subscribed to the Warrants issue https://www.ibef.org/ .
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 https://rbi.org.in/ .
UGRO Capital, since its inception, has raised total equity capital commitment of Rs.2,700 crores, has an outstanding total debt of Rs.4,643 crores from domestic and global institution, and has partnered with 13 Banks and other Financial Institution for doing Rs.3,295 crores of Co-Lending. It has extended data-driven customized finance solutions to over 78,000 MSMEs http://msme.gov.in across India.
UGRO Capital Limited, listed on NSE and BSE, is backed by marquee institutional investors (raised Rs.900+ crore of equity capital in 2018, Rs.340 crore in 2023 and Rs.900 crore in 2024). fiinews.com
