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UGRO Capital, a DataTech-driven NBFC specializing in MSME financing, has launched a ₹400 crore rights issue, pricing the shares at ₹162 apiece. The move follows a recent ₹915 crore

preferential issue via compulsorily convertible debentures (CCDs), as the company seeks to scale up its asset book and expand its national footprint.

Approved by the Securities Allotment and Transfer Committee, the rights issue offers 50 equity shares for every 189 shares held, with the record date set for June 5. The subscription window

will run from June 13 to June 20, and may be extended by up to 30 days. The offer price of ₹162 matches the CCD conversion price to ensure equitable participation by public shareholders.

“We are consistently adding ₹3,000 crore to our AUM annually. This capital raise ensures our momentum remains unhindered,” said Shachindra Nath, Founder and MD, UGRO Capital. “By offering

existing shareholders the chance to subscribe at the same price as institutional investors, we’re reinforcing our commitment to inclusive growth.”

The rights issue has already attracted commitments of over ₹250 crore, including ₹150 crore from IFU, an affiliate of the Danish government, and ₹34 crore from UGRO’s promoters, promoter

group, and employees. This follows UGRO’s June 2024 capital raise of ₹1,265 crore through CCDs and warrants.

According to the investor presentation, Samena Capital has committed up to ₹500 crore, while Aregence has committed ₹168 crore in the preferential CCD allotment. The majority of the CCD

subscribers are existing shareholders or warrant holders, reinforcing long-term confidence in UGRO’s MSME-focused strategy.

UGRO’s AUM rose to ₹12,003 crore in FY25, up from ₹9,047 crore in FY24, while profit before tax increased to ₹203 crore from ₹179 crore the previous year. The company maintained a robust

return on assets of 2.9% and capital adequacy of 29.4% as of March 2025.

Despite increasing exposure to emerging markets and equipment finance segments, UGRO maintained a manageable gross NPA of 2.3% and net NPA of 1.6%, with credit costs contained at 1.6%. FY25

EPS stood at ₹15.7, with a book value per share of ₹219.6 prior to the capital raise.

The company plans to deploy the capital toward expanding branch coverage from 212 to 400, scaling co-lending relationships, and investing in its proprietary DataTech platforms such as GRO

Score, GRO Xstream, and GRO Chain, which enable automated credit assessment, embedded finance, and supply chain lending for underserved small businesses. “This infusion allows us to deepen

credit delivery and build on our goal of solving India’s MSME credit gap using a tech-led, multi-channel approach,” Nath added.

UGRO, which has strategic partnerships with 17 banks and NBFCs, now manages 42% of its AUM off-balance sheet through co-lending and co-origination, further underscoring the scalability of

its hybrid model.

InCred Capital is advising UGRO on the transaction, with SNG & Partners serving as legal counsel.