Non-bank lender UGRO Capital Ltd approved issuance of non-convertible debentures (NCDs) aggregating up to ₹205 crore through private placement in one or more tranches, following a meeting of its Investment and Borrowing Committee on Saturday (March 21). According to reports from CNBC TV18, the issuance comprises two distinct parts with different structures and terms.
The first component includes up to 1,05,000 listed, rated, senior, secured, transferable, redeemable NCDs with a face value of ₹10,000 each, featuring a green shoe option of up to 50,000 NCDs, aggregating to an overall issue size of up to ₹155 crore. As reported by CNBC TV18, these secured NCDs will have a tenure of 12 months and 22 days from the deemed date of allotment, with a tentative allotment date of March 27, 2026, and maturity on April 18, 2027. The instruments carry a coupon of 9.50% per annum, payable monthly, with redemption at par on maturity, and will be secured through a first-ranking pledge over equity shares and hypothecation of receivables.
The second component consists of up to 4,000 unsecured, rated, subordinated, listed, taxable, redeemable NCDs with a face value of ₹1,00,000 each, along with a green shoe option of up to 1,000 NCDs, aggregating to an overall issue size of up to ₹50 crore. According to CNBC TV18, these unsecured subordinated NCDs will have a tenure of up to 72 months, with the same tentative allotment date of March 27, 2026, and maturity on March 27, 2032. These instruments carry a coupon of 13.25% per annum, payable semi-annually, with redemption split - 50% at par at the end of 66 months and the remaining 50% at the end of 72 months.
On Friday (March 20), shares of UGRO Capital Ltd ended at ₹94.15, up by ₹2.00, or 2.17%, on the BSE, as reported by CNBC TV18. Both instruments will be issued on a private placement basis and are proposed to be listed on BSE Limited, with an additional 2% per annum over the coupon rate applicable on outstanding amounts in case of delay or default in payment for both instruments.
