To pay additional interest to bond holders for CAR breach period: UGRO

On May 20th, 2025, UGRO has announced a capital raise of more than Rs. 1300 crore which would increase its capital adequacy from current 19.4 percent to 29.4 percent

UGRO Capital will pay additional interest to bondholders for breaching covenants related to the capital adequacy ratio, the company said in a response to Business Standard.

 

The non-banking finance company has requested a relaxation of the capital adequacy covenant, for which the trustee has written to bondholders.

 

“Trustees have called a bondholders’ meeting on 23 May 2025 as per the guidelines, and in the said meeting, the company requested a waiver of the condition, keeping in view the likely completion of the fund raise by July 2025,” UGRO said.

 

“In terms of the trust deed, and as discussed in the debenture holders’ meeting, the company shall pay additional interest for the breach period, the likely impact of which is not material,” it added.

 

 

The outstanding amount of the bonds is ₹49.28 crore. The bonds are maturing in four months, in September 2025. The company’s total borrowings stood at ₹6,900 crore as of 31 March 2025.

 

UGRO’s capital adequacy ratio (CAR) was 19.4 per cent, slightly below the 20 per cent agreed upon in its covenant.

 

“We agreed to maintain a higher CRAR of 20 per cent, which is well above the statutory requirement of 15 per cent, as we were in our growth phase,” the company said.

 

On 20 May 2025, UGRO announced a capital raise of over ₹1,300 crore, which is expected to increase its capital adequacy from the current 19.4 per cent to 29.4 per cent.

 

The NBFC’s assets under management (AUM) at the end of FY25 stood at ₹12,003 crore, up from ₹9,047 crore in the previous year. The gross non-performing asset (GNPA) ratio rose slightly to 2.3 per cent from 2 per cent.