UGRO Capital to raise up to Rs 915 crore through preferential CCD issue

UGRO Capital's board approves Rs 915 crore capital raise via CCDs; capital adequacy to improve from 19.41% to 29.4%, with rights issue of Rs 400 crore also planned

UGRO Capital on Tuesday said its board has approved raising up to Rs 915 crore through a preferential issue of compulsorily convertible debentures (CCDs).

 

Post the capital raise, UGRO’s capital adequacy is expected to improve to 29.4 per cent from 19.41 per cent at the end of FY25, providing significant headroom for growth.

 

In June 2024, UGRO Capital had raised capital commitments of Rs 258 crore through CCDs and Rs 1,007 crore through warrants, totalling Rs 1,265 crore. These instruments were issued at a conversion price of Rs 264 per share. The new CCDs will be issued at a conversion price of Rs 185 per share. 

 

As part of the preferential allotment, UGRO’s existing shareholder, Samena Capital and its private equity funds — which currently own 7.49 per cent of the company — have committed up to Rs 500 crore, positioning them as a large institutional shareholder. Singapore-based public market investor Aregence has committed Rs 168 crore.

 

The board has also approved a rights issue of up to Rs 400 crore.

 

“With a view to giving a fair opportunity to public shareholders to preserve their shareholding levels in the company, the board has approved a rights issue of up to Rs 400 crore, the terms of which will be determined in the forthcoming board meeting, in line with the terms of the preferential allotment,” the company said in a statement.