What are the terms of the new NCDs?

The debentures have an 18-month tenure and carry a 9.75% annual coupon, which the company will pay out monthly. They mature on 26th November 2027.

How significant is this raise for Ugro Capital?

The ₹200 crore raise represents 12.7% of the company's ₹1,570 crore market capitalization. It is a material addition to the company's capital base.

What assets are backing this debt?

Ugro Capital has provided a first-ranking floating charge on its identified receivables, cash, investments, and loan book assets as security for the debenture holders.

What is the intended use of the funds?

The company plans to use the proceeds to support its lending expansion and overall capital management strategy.

Finance - NBFC · Small cap

Ugro Capital raises ₹200 cr via private placement of NCDs

The micro-cap lender secured the debt at a 9.75% coupon, a move equal to 12.7% of its total market capitalization.

— 1 earlier story on Ugro Capital Ltd. →

UGROCAP 26 May 2026 · 4:03 PM IST Verify on BSE · NSE

Mkt cap₹1,517 cr

P/E8.68×

ROE6.02%

Debt / eq.3.71

₹200 cr Total capital raised through the 18-month NCD issuance.

What's new

Ugro Capital issued 2,00,000 secured NCDs at a face value of ₹10,000 each.
The 18-month debt carries a 9.75% annual coupon with monthly payouts.
The issue is secured by a first-ranking floating charge on loan book assets and receivables.

Why this matters

Raising capital equivalent to 12.7% of its market value is a heavy lift for a micro-cap lender. This infusion provides the liquidity needed for loan book growth, but it also adds a fixed 9.75% interest burden that will weigh on future margins.

What we're watching

How the company deploys these funds to expand its lending book.
The impact of this debt on the company's interest coverage ratios.
Whether this issuance signals a shift in the company's cost of borrowing.

The full read

Ugro Capital has locked in ₹200 crore through a private placement of 2,00,000 secured non-convertible debentures. Priced at a face value of ₹10,000 each, the debt carries a 9.75% annual coupon payable on a monthly basis. The debentures are set to mature on 26th November 2027.

It is a heavy lift.

This raise amounts to 12.7% of the company's ₹1,570 crore market capitalization, making it a material event for a micro-cap lender that must now balance this new interest burden against the need to rapidly deploy capital into its loan book to maintain its growth trajectory.

Questions answered

What are the terms of the new NCDs?: The debentures have an 18-month tenure and carry a 9.75% annual coupon, which the company will pay out monthly. They mature on 26th November 2027.
How significant is this raise for Ugro Capital?: The ₹200 crore raise represents 12.7% of the company's ₹1,570 crore market capitalization. It is a material addition to the company's capital base.
What assets are backing this debt?: Ugro Capital has provided a first-ranking floating charge on its identified receivables, cash, investments, and loan book assets as security for the debenture holders.
What is the intended use of the funds?: The company plans to use the proceeds to support its lending expansion and overall capital management strategy.

Mentioned: Ugro Capital · ₹200 cr NCDs · 26th November 2027

Primary source BSE · NSE

An independent reading of the company's own disclosure — the primary filing above is the final word.

Story so far

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26 May 2026 · 4:03 PM IST Ugro Capital raises ₹200 cr via private placement of NCDs
today Ugro Capital defends founder's ₹10 cr pay package