Existing and new institutional investors & marquee family offices invest in Sachindra Nath-led NBFC focused on MSMEs.
MUMBAI, May 2 (The CONNECT) – MSME-focused DataTech NBFC UGRO Capital Limited today announced that its Board of Directors have approved an equity capital raise of INR 1,332.66 Cr through Compulsory Convertible Debentures (CCD) and Warrants. The equity fund raise is subject to shareholder approval.
This capital raise received strong commitment from Samena Capital, one of the Company’s existing private equity investors, which committed INR 500 Crores through Warrants. In addition, institutional investors like Aregence and some of India’s marquee family offices have committed in CCD and Warrants.
This equity capital raise was advised by InCred Capital, the Investment Banking arm of Incred Group.
UGRO’s founder, board members and management team together committed INR 16.25 Crores in Warrants. UGRO’s founder, on August 9, 2023, had invested his entire first bonus received from the Company in buying UGRO’s shares.
Shachindra Nath, Founder and Managing Director of UGRO Capital, said, India needs more financial institutions such as NBFC, to fulfil the credit gap of more than 90 Lac crores.
This is the third capital raise by UGRO Capital. In 2018, Nath acquired control of a small listed NBFC ‘Chokhani Securities Limited’ and simultaneously raised institutional equity capital of INR 914 Crores from the likes of TPG – NewQuest, PAG, ADV Capital, Samena Capital and other domestic family offices and public market investors. This in 2018 was one of the largest capital raises for a listed company at a startup stage.
Bhupinder Singh, Founder & Group CEO, InCred, said, the “phenomenal success” of this deal, following on from the investment banker’s transaction for IndiaBulls, is a testimony to its strength
Nath complimented InCred, saying the team did a “very impressive and commendable job” proving to be a solid partner to us at all stages of the transaction. “InCred got very unique investors on the table who shared our vision and were keen to participate in our growth,” he added.
Last year, U GRO Capital continued its trajectory of strategic expansion, raising INR 340.5 Crores. Of this, INR 240 Crores was garnered through preferential allotment to IFU (Investeringsfonden for Udviklingslande) via its Danish Sustainable Development Goals Investment Fund K/S. Additionally, INR 100.5 Crores was secured from long-term shareholders, including insurance companies, AIFs, and other financial institutions, through a Qualified Institutions Placement (QIP). These successive capital raises reflect U GRO Capital’s unwavering commitment to innovation, growth, and fostering sustainable development in the Indian MSME landscape.
UGRO Capital Raises INR 1,332.66 CR via CCD
