Ugro Capital has successfully raised Rs 380 crore through the private placement of senior, secured, non-convertible debentures (NCDs). The debt instruments carry a 10.20% annual coupon rate, payable semi-annually, with a five-year maturity period ending in August 2031. The funds are secured by a first-ranking exclusive charge on specified receivables, with the company maintaining an asset cover of at least 1.1 times. This move strengthens the company's liquidity position for its lending operations.
Ugro Capital Completes Rs 380 Crore NCD Issuance
Ugro Capital Limited has allotted 38,000 non-convertible debentures (NCDs) worth Rs 380 crore.
The issuance carries a 10.20% annual interest rate and matures on August 28, 2031.
Reader Takeaway: This debt raise bolsters liquidity for credit operations, though investors should monitor future asset coverage ratios.
What just happened
The Investment and Borrowing Committee of Ugro Capital approved the allotment of 38,000 senior, secured, rated NCDs on August 28, 2026. Each debenture has a face value of Rs 1,00,000. These instruments are set to be listed on the Wholesale Debt Market segment of the BSE.
Why this matters
This issuance provides the company with long-term capital to support its lending business. The 10.20% coupon rate highlights the company's cost of debt in the current interest rate environment. The structured repayment schedule starting in 2029 suggests a calibrated approach to managing long-term liabilities.
Security and Collateral
To protect debenture holders, Ugro Capital has provided a first-ranking exclusive charge via hypothecation over specific assets and receivables. The company is contractually obligated to maintain a minimum asset cover of 1.1 times the outstanding principal plus accrued interest until the final redemption.
What changes now
The company assumes a defined repayment obligation starting August 2029, with principal payments spread across five installments concluding in August 2031. Failure to meet these obligations within a three-month grace period triggers a default interest penalty of 2% per annum above the existing coupon rate.
What to track next
Investors should track the company’s quarterly updates regarding asset quality and its ability to maintain the mandatory 1.1x asset cover. Consistent compliance with these covenants is essential for maintaining credit stability.