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EFFECTIVE ANNUALIZED YIELD UP TO 11.03% PER ANNUM#
· Secured NCDs of face value (“Face Value”) of Rs. 1,000 each.
· The Issue is for an amount of ₹ 10,000 lakhs (“Base Issue Size”) with an option to retain oversubscription up to ₹ 10,000 lakhs (green shoe option) aggregating up to ₹ 20,000 lakhs.
· Rated as “IND A/Stable” by India Ratings & Research Private Limited.
· Effective annualized yield up to 11.03% p.a#.
· The Issue opens on Thursday, February 08, 2024 and closes on Wednesday, February 21, 2024 with an option of early closure subject to compliance with Regulation 33A of the SEBI NCS Regulations.
· The NCDs are proposed to be listed on BSE and NSE (collectively, “Stock Exchanges”).
# Applicable for Series V NCDs (Annual option). Please refer to the specified terms of the NCDs Issue mentioned in the below table. For further details please refer to Prospectus dated February 01, 2024 read with corrigendum dated [February 05, 2024]
Chennai, February 8, 2024: UGRO Capital Limited is currently engaged in the business of lending and primarily deals in financing SME and MSME sector. The company has announced the issue of secured, rated, listed, redeemable, non-convertible debentures of the face value of ₹ 1,000 each. The Issue opens on Thursday, February 08, 2024 and closes on Wednesday, February 21, 2024 with an option of early closure subject to compliance with Regulation 33A of the SEBI NCS Regulations.
The Issue has a base issue size of ₹ 10,000 lakhs with an option to retain oversubscription up to ₹ 10,000 lakhs, aggregating up to ₹ 20,000 lakhs. The NCDs are proposed to be listed on the Stock Exchanges and NSE is the Designated Stock Exchange for the Issue. The NCDs have been rated “IND A/Stable” by India Ratings & Research Private Limited.
JM Financial Limited is the sole lead manager to the issue and Link Intime India Private Limited is the Registrar to the Issue and Mitcon Credentia Trusteeship Services Limited is the debenture trustee to the Issue.
This issue has tenor of 18 months, 24 months, and 27 months for secured NCDs. Effective yield (% per annum) for NCD holders in all Categories ranges from 10.72% to 11.03%. Redemption Amount (₹ / NCD) on maturity for NCD holders in all Categories range is ₹ 1000 and for Series III it is through Staggered Redemption in eight (8) quarterly payments of ₹ 125 each, starting from 1st quarter from the deemed date of allotment until maturity.
At least 75% of the Net proceeds of the Issue shall be utilized for the purpose of onward lending and financing business of the company in ordinary course of business (including for repayment / refinance of existing borrowings) and Not exceeding 25% shall be used for general corporate purposes.
As on March 31, 2023 its CRAR, in accordance with the Audited Financial Results was at 20.23% and for the nine months period ended December 31, 2023 stood at 22.27%.
UGRO’s AUM has grown from ₹ 1316.87 crore as at March 31, 2021 and ₹ 2969.80 crores as at March 31, 2022 to ₹ 6080.71 crore as at March 31, 2023. As of December 31, 2023, our AUM is at ₹8363.76 crore. Across the offered products, as on December 31, 2023, the average ticket size stood at ₹ 16.19 lakh and our average lending rate stood at 16.3% p.a.
The specified terms of the NCDs Issue are set out below:
| Series | I | II | III | IV* | V |
| Frequency of Interest Payments | Monthly | Annual | Quarterly | Monthly | Annual |
| Minimum Application |
Rs 10,000 (10 NCDs) across all series |
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| In Multiples of thereafter (Rs) |
Rs 1,000 (1 NCD) |
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| Face Value/ Issue Price of NCDs (Rs/ NCD) |
Rs 1,000 |
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| Tenor | 18 Months | 18 Months | 24 Months | 27 Months | 27 Months |
| Coupon (% per annum for NCD Holders in all Categories | 10.25% | 10.75% | 10.35% | 10.50% | 11.00% |
| Effective Yield (% per annum for NCD Holders in all Categories | 10.72% | 10.82% | 10.74% | 11.01% | 11.03% |
| Mode of Interest Payment |
Through various modes available |
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| Redemption Amount (₹ / NCD) on
Maturity for NCD Holders in all Categories |
Rs 1,000 | Rs 1,000 | Staggered Redemption in eight (8) quarterly payments of ₹ 125 each, starting from 1st quarter** until maturity | Rs 1,000 | Rs 1,000 |
| Maturity/Redemption Date (from the Deemed Date of Allotment) | 18 Months | 18 Months | 24 months (Staggered Redemption as per “Principal Redemption Schedule and Redemption Amounts for Series III NCDs” on page 209 of the Prospectus) | 27 Months | 27 Months |
| Put and Call Option |
Not Applicable |
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| Nature of Indebtedness |
Secured |
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*Our Company shall allocate and allot Series IV NCDs (Monthly option) wherein the Applicants have not indicated the choice of the relevant NCD Series
**From the deemed date of allotment (We have added this back since we have used ** in the table)