Ugro Capital approves raising up to Rs 135 crore through non-convertible debentures

Ugro Capital has announced plans to raise up to Rs 135 crore via issuance of non-convertible debentures (NCDs). "We hereby inform you that the Board of Directors of the Company at its meeting held on May 18, 2024, has approved issuance of up to 3,500 Senior, Secured, Rated, Listed, Redeemable, Transferable Non-Convertible Debentures denominated in Indian Rupees, having a face value of Rs 1,00,000 each and an aggregate face value of Rs 35,00,00,000, in dematerialised form, on a private placement basis," it stated.

It also agreed on issuance of NCDs aggregating up to Rs 100 crore. "It has approved issuance of up to 10,000 (ten thousand) Listed, Rated, Senior, Secured, Taxable, Redeemable, Non-Convertible Debentures, having a face value of Rs 1,00,000 each aggregating up to Rs 100,00,00,000 including a green shoe option of up to 5,000 Listed, Rated, Senior, Secured, Taxable, Redeemable, NCDs, each having face value of Rs 1,00,000 aggregating up to Rs 50,00,00,000 in dematerialised form, on a private placement basis," it further said.

Separately, the non-banking company has recently approved the acquisition of financial services platform MyShubhLife for an enterprise value of Rs 45 crore in a cash and equity deal.

"The board of directors has approved the acquisition of 'MyShubhLife', a prominent Embedded Finance Fintech platform headquartered in Bangalore, for an enterprise value of Rs 45 crore through a combination of 64:36 equity cash transaction, thereby making it a wholly owned subsidiary," Ugro Capital said.

The NBFC's board has also approved raising equity capital of Rs 1,322 crore through Compulsory Convertible Debentures (CCD) and warrants.

This capital raise has received strong commitment from Samena Capital, one of the company's existing private equity investors, which committed Rs 500 crore through warrants, Ugro mentioned.

On technical setup, the counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 55.04. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 455.40 against a price-to-book (P/B) value of 1.03. Earnings per share (EPS) stood at 0.62 with a return on equity of 0.23.

Ugro Capital is a datatech NBFC focused on MSME lending. The stock was last seen up 2.12 per cent at Rs 282.35.