UGRO Capital launches Rs 400 Cr rights issue at Rs 162 per share

UGRO Capital, an NBFC catering to MSMEs, has finalised the terms of its Rs 400 crore rights issue, pricing shares at Rs 162 each. This move follows the board's May 20 approval of a combined Rs 1,315 crore capital raise, including a Rs 915 crore preferential issue of compulsorily convertible debentures (CCDs) and this rights issue.

The pro-rata rights issue ensures all existing public shareholders can maintain their ownership and avoid dilution as UGRO continues to grow its loan book and expand its digital-led lending platform, a statement from the company said.

The company has already secured commitments exceeding Rs 250 crore for the rights issue, including Rs 150 crore from Denmark’s IFU (Investment Fund for Developing Countries), and Rs 34 crore from the promoter group and employees.

UGRO’s Assets Under Management reached Rs 12,003 crore in FY2024–25, with profit before tax more than doubling to Rs 203 crore, and a strong capital adequacy ratio maintained.

“We’re adding Rs 3,000 crore to our AUM annually. With portfolio quality holding strong, this capital raise ensures our momentum continues. Offering shares at Rs 162—the same as our preferential CCD pricing—allows public shareholders to fully participate in UGRO’s next growth phase. With enhanced capital strength, we’re well-positioned to scale credit delivery and meet the evolving needs of India’s underserved MSMEs," Shachindra Nath, Founder & MD of UGRO Capital said.

InCred Capital is acting as financial advisor, while SNG & Partners is serving as legal counsel for the rights issue and recent capital raise.