UGRO Capital is coming up with secured, Senior, Listed and redeemable NCD bonds now. These bonds would open for subscription on 8 February, 2024. UGRO Capital is the systemically important NBFC company in India. The NCD interest rates for UGRO Capital NCD are up to 11% and yield up to 11.03%. These NCDs are offered for 18, 24 and 27 month tenure. Interest is paid either monthly, quarterly or yearly. Should you invest in UGRO Capital NCD issue of February, 2024? What are the risk factors one should consider before investing in UGRO NCD 2024?
About UGRO Capital Limited
The company is a non-deposit taking systemically important NBFC registered with the RBI.
UGRO Capital’s mission is to provide access to financing to the underserved MSME sector, which is critical to Indian economic growth and employment creation, and yet suffers from a chronic lack of affordable, efficient and sustainable credit availability. MSMEs represent the most important organic method by which the country’s impoverished can come out of the so-called ‘Poverty Trap’. Despite the challenges faced during the pandemic year, the company has received various recognitions and awards including,
(i) featuring in the Top 5 Digital / Fintech Lending Companies for MSMEs by BW Disrupt & IBS Intelligence
(ii) ET Best BFSI Brand of the year award for FinTech Category
(iii) Best MSME Lending Company by World Leadership Congress and Awards
(iv) Quick Loan Approval Award and Best Lending Tech of the year Award by National Award for Excellence in Financial Services Marketing and few others.
UGRO Capital NCD – Feb-24 – Issue Details
|Subscription opening Date
|Subscription closure Date
|Issuing Security Name
|UGRO Capital Limited
|Secured, Rated, Listed, Redeemable, Non-convertible Debentures
|Issue Size (Base)
|Rs 100 Crores
|Issue Size (Option to retain over subscription)
|Rs 100 Crores
|Total issue size
|Rs 200 Crores
|Rs 1,000 per bond
|Rs 1,000 per bond
|I to V
|Minimum Lot size
|10 bonds and 1 bond there after
|18, 24 and 27 months
|Interest Payment frequency
|Monthly, Quarterly and Annually
|Within 6 working days on BSE/NSE
|JM Financial Limited
|MITCON Credentia Trusteeship Services Limited
UGRO Capital NCD – Feb-24 – Interest Rates
|Frequency of Interest Payment
|Coupon (% per Annum)
|Effective Yield (% per Annum)
|Amount on Maturity (In Rs.)
UGRO Capital NCD – Feb-24 issue – Credit Ratings
UGRO Capital NCD rating is assigned as IND A/Stable by India Ratings and Research Limited. Securities with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such securities carry low credit risk.
How is the company doing in terms of profits?
Its profits are as below:
- FY2020 – Rs 19.5 Crores
- FY2021 – Rs 28.7 Crores
- FY2022 – Rs 14.5 Crores
- FY2023 – Rs 39.7 Crores
- 6 months ending Sep-23 – Rs 54.12 Crores
UGRO Capital NCD – Feb-24 – Why to invest?
- UGRO Capital NCD’s offer attractive interest rates where investors can get interest up to 11% per annum and yield up to 11.03%.
- It issues senior and secured NCDs. These NCDs are safe compared to unsecured NCDs. In case a company gets wind-up/shut down for some reason, secured NCD investors would get preference in repayment of capital along with interest as those backed up by assets of the company. Hence, it is safe to invest in such secured NCD options.
- These NCDs are rated as IND A/Stable by India Ratings and Research which are considered to be good credit ratings.
UGRO Capital NCD – Feb-24 – Why not to invest?
- The impact of a Covid-19 pandemic on business is uncertain, cannot be predicted and can affect them in future too.
- Company Directors and Promoters are subject to certain legal proceedings and any adverse decision in such proceedings can affect the business.
- Company financial performance is particularly vulnerable to interest rate volatility.
- High level of customer defaults or delays in repayment of loans could adversely affect the business.
- Refer UGRO NCD issue Feb-24 prospectus for complete risk factors.
How to invest in UGRO Capital NCD Online?
This issue is available in only in demat form. Login to your demat account, check for NCD section and look for this NCD link and apply for the same.
How safe is UGRO Capital NCD?
These NCD bonds are rated as IND A/Stable by India Ratings and Research Private Limited. Securities with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such securities carry low credit risk.
UGRO Capital NCD – Feb-24 – Should you invest?
UGRO Capital NCD of February-2024 issue offers very high interest rates up to 11% and yield up to 11.03%. These NCDs are rated as IND A/Stable by India Ratings and Research Private Limited which are considered as good (while AAA rated bonds could have been better). However, these credit ratings can change in future without any advance notice. Since these are secured NCDs, these are a safer compared to unsecured NCD bonds.
High risk investors who are willing to take risks indicated above can invest in these NCDs.