UGRO Capital Rights Issue: ₹400 Cr at ₹162 Per Share
UGRO Capital is set to raise ₹400 Cr through a rights issue at ₹162 per share, a move designed to boost MSME financing and expand its DataTech capabilities. This strategic decision, complemented by a ₹915 Cr preferential issuance, reflects strong investor confidence, including significant commitments from IFU and company stakeholders. This follows impressive growth, with Assets Under Management reaching ₹12,003 Cr, and a doubling of profit before tax in fiscal year 2024-25.News Directory 3 readers can find the full details of how this capital infusion will impact UGRO Capital’s strategy. Discover what’s next for this financial innovator.
UGRO capital Announces Rights Issue for MSME Financing
Updated May 31,2025
UGRO Capital,a DataTech-driven MSME financing NBFC in India,has finalized the terms of its rights issue,following board approval on May 20. The company aims to raise up to ₹400 Crore through this issue, alongside a ₹915 Crore preferential issuance of Compulsory Convertible Debentures (CCD).
The Securities Allotment & Transfer committee approved the offering of new equity shares at ₹162 per share. this pro-rata offering allows existing public shareholders to maintain their stake as UGRO Capital expands its balance sheet and strengthens its DataTech advantage in serving underserved MSMEs.
Commitments exceeding ₹250 Crore signal strong confidence in UGRO Capital’s strategy. This includes ₹150 Crore from IFU (Investment Fund for Developing Countries, Denmark) and ₹34 Crore from the promoter, Promoter-group, and employees.
The rights issue builds on recent performance, with Assets Under Management (AUM) growing to ₹12,003 Crore and profit before tax more than doubling to ₹203 Crore in fiscal year 2024-25, while maintaining a healthy capital adequacy ratio.
“At UGRO Capital, we are consistently adding ₹3,000 Crore in AUM year-on-year. Given the strong growth momentum and steady portfolio quality we are witnessing, this capital raise would ensure that our growth trajectory remains unhindered,” said Shachindra Nath, founder & managing director of UGRO Capital.
Nath added that offering shareholders the possibility to subscribe at ₹162 per share, in line with the preferential allotment of CCD, allows them to participate in the company’s growth. He said growing AUM and profitability, coupled with a strengthened capital adequacy ratio, position UGRO to scale its credit delivery and support the financial needs of small businesses across India.
InCred Capital is serving as financial advisor, and SNG & Partners as legal advisor for the rights issue and previous equity capital raise.
What’s next
UGRO Capital aims to capture 1% market share over the next three years, leveraging its