UGRO Capital Announces Rs 400 Crore Rights Issue at Rs 162 Per Share

UGRO Capital, an NBFC serving MSMEs, has set the price for its Rs 400 crore rights issue at Rs 162 per share.

This comes after the board approved a total capital raise of Rs 1,315 crore on May 20, which includes a Rs 915 crore preferential issue of convertible debentures and this rights issue. 

The rights issue lets existing public shareholders keep their ownership without dilution as UGRO grows its loan business and digital lending platform, the company said.

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The company has already received promises to invest over Rs 250 crore in the rights issue. This includes Rs 150 crore from Denmark’s IFU (Investment Fund for Developing Countries) and Rs 34 crore from the promoter group and employees. UGRO’s Assets Under Management reached Rs 12,003 crore in FY2024-25. Its profit before tax more than doubled to Rs 203 crore, and it kept a strong capital adequacy ratio.

“We’re adding Rs 3,000 crore to our AUM annually. With portfolio quality holding strong, this capital raise ensures our momentum continues. Offering shares at Rs 162—the same as our preferential CCD pricing—allows public shareholders to fully participate in UGRO’s next growth phase. With enhanced capital strength, we’re well-positioned to scale credit delivery and meet the evolving needs of India’s underserved MSMEs," Shachindra Nath, Founder & MD of UGRO Capital said.

InCred Capital is the financial advisor, and SNG & Partners is the legal advisor for the rights issue and recent fundraise.

UGRO Capital said that apart from the preferential allotment, IFU—a Danish impact investor linked to the Danish government and already holding 16.35% in the company—has committed Rs 150 crore to the rights issue. The promoter, promoter group, and employees have also shown their support by contributing Rs 34 crore through the CCD and rights issue.

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