UGRO Capital Ltd. has approved a ₹205 crore NCD issuance, offering investors a mix of secured and unsecured instruments with attractive returns and flexible investment options.
Following a meeting of its Investment and Borrowing Committee, non-bank lender UGRO Capital Ltd. authorized the issuance of non-convertible debentures (NCDs) of up to ₹205 crore via private placement in one or more tranches on Saturday, March 21.
UGRO Capital Approves ₹205 Crore NCD Issue
There are two components to the issuance. First, there are up to 1,05,000 senior, listed, rated, secured, transferable, and redeemable NCDs having a face value of ₹10,000 apiece. There is also a green shoe option for up to 50,000 NCDs, totaling up to ₹155 crore.
The second includes a green shoe option of up to 1,000 NCDs and up to 4,000 unsecured, rated, subordinated, listed, taxable, redeemable NCDs having a face value of ₹1,00,000 each, totaling an issue size of up to ₹50 crore. Both instruments are intended to be listed on BSE Limited and will be offered on a private placement basis.
Breakdown of Secured and Unsecured NCDs
The secured NCDs will mature on April 18, 2027, and have a term of 12 months and 22 days from the deemed date of allocation. The proposed allotment date is March 27, 2026. These have a 9.50% annual coupon that is payable each month and redeemable at par when they mature. The business will provide security by hypothecating receivables in favor of the debenture trustee and making a first-ranking pledge over equity shares.
With the same anticipated allocation date of March 27, 2026, and maturity on March 27, 2032, the unsecured subordinated NCDs will have a term of up to 72 months. These have a 13.25% yearly coupon that is due on a semi-annual basis. 50% of the redemption will be at par at the end of 66 months, and the remaining 50% at the end of 72 months.
💼 UGRO Capital NCD Highlights
- Total Issue Size: ₹205 crore
- Secured NCDs: Up to ₹155 crore
- Unsecured NCDs: Up to ₹50 crore
- Secured Coupon: 9.50% annually
- Unsecured Coupon: 13.25% annually
- Listing: BSE Limited
Interest Rates, Tenure, and Redemption Details
The outstanding amount for both instruments will be subject to an extra 2% annually beyond the coupon rate in the event of a payment delay or default. Ugro Capital Ltd. shares finished Friday, March 20, at ₹94.15, up ₹2.00, or 2.17%, on the BSE.
⚠️ Investment Risks & Key Terms
- Penalty: 2% extra interest on delays/defaults
- Secured Tenure: ~12 months
- Unsecured Tenure: Up to 72 months
- Redemption: Split payout for unsecured NCDs
- Security: Receivables & equity pledge
- Mode: Private placement
Frequently Asked Questions
1) What is the NCD issuance of UGRO Capital?
UGRO Capital has authorized the private issue of non-convertible debentures (NCDs) worth ₹205 crore, providing both secured and unsecured alternatives.
2) How long do the secured NCDs last?
The secured NCDs mature on April 18, 2027, and have a duration of 12 months and 22 days.
What is the unsecured NCD coupon rate?
The unsecured subordinated NCDs have a semi-annual coupon rate of 13.25% yearly.
4) What is the alternative for green shoes?
Up to a certain amount—in this example, up to ₹50 crore for secured NCDs and ₹1 crore for unsecured NCDs—UGRO Capital may issue further NCDs under the green shoe option.
What will be the list of NCDs?
Following issue, the BSE Limited will list both secured and unsecured NCDs.
Conclusion
Listed on the BSE, UGRO Capital’s ₹205 crore NCD issue provides investors with flexibility and opportunity by offering a combination of secured and unsecured notes with appealing coupon rates.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Investors should evaluate risks and consult financial advisors before investing.
