UGRO Capital’s non-convertible debentures (NCDs) public issue has been oversubscribed 1.44 times, the non-banking financial institution said in a statement. The issue has received responses from about 60 institutional lenders and 3,000 retail investors. The company plans to raise `50 crore with the option of retaining another Rs 50 crore oversubscription through the publicly listed NCD.
The issue opened for subscription on April 07, 2022 and closed on May 06, 2022.
NCDs will be issued in three series with 18-month, 27-month and 36-month term and each year with coupon rates of 10%, 10.15% and 10.40% respectively. The company plans to use 75% of the funds for forward loans and for interest and principal repayments of its existing loans while the remaining 25% of the funds have been allocated for general corporate purposes.
UGRO Capital, which generally lends to MSMEs in various fields, disbursed a total of Rs 3,100 crore in FY22. In terms of asset quality, the company’s gross non-performing assets (NPA) ratio was about 2%, while the collection efficiency as of March 2022 was close to 100%, according to previous disclosures.
The company has raised about Rs 2,500 crore through equity and debt in the last three years.
The company uses an underwriting model of Synaptic System, a US-based platform based on artificial intelligence (AI), to improve underwriting and decision-making during loan disbursements.