UGRO Capital's Bold Rs 400-Crore Rights Issue Fuels Growth Momentum

UGRO Capital, a data-tech-driven MSME financing non-banking financial company (NBFC), has set the price for its Rs 400-crore rights issue at Rs 162 per share, as revealed on Monday. This development follows the approval of final rights issue terms by the company's Securities Allotment & Transfer Committee.

The plan involves offering new equity shares amounting to Rs 400 crore, priced at Rs 162 each, ensuring existing public shareholders can retain their stakes and prevent dilution. This measure is part of UGRO Capital's strategy to augment its balance sheet while leveraging its data-tech advantage to better serve India's underserved MSME sector.

Shachindra Nath, Founder and Managing Director of UGRO Capital, emphasized the company's strong growth, with assets under management reaching Rs 12,003 crore and profit before tax doubling to Rs 203 crore for FY2024-25. He stated that the capital raise would facilitate continued growth, enhancing UGRO's credit delivery to support small businesses across India.

(With inputs from agencies.)