U GRO Capital’s Rs 100-cr NCD issue subscribed 1.44 times

U GRO Capital’s non-convertible debenture (NCD) public issue was oversubscribed 1.44 times, the non-banking financial company said in a statement. The issue got response from around 60 institutional lenders and 3,000 retail investors. The company is planning to raise `50 crore with an option to retain oversubscription of another Rs 50 crore via publicly listed NCDs.

The issue opened for subscription on April 07, 2022, and closed on May 06, 2022.

The NCDs will be issued in three series with the tenures of 18 months, 27 months and 36 months and coupon rates of 10%, 10.15% and 10.40% per year, respectively. The company plans to use 75% of the funds for onward lending and for repayment of interest and principal of its existing borrowings while the remaining 25% of the funds are allocated for general corporate purposes.

U GRO Capital, which typically lends to MSMEs in several sectors, has disbursed gross loans of Rs 3,100 crore in FY22. On asset quality front, the company’s gross non-performing asset (NPA) ratio was around 2% while collection efficiency as of March 2022 was near 100%, as per an earlier disclosure.

The company has raised around Rs 2,500 crore via equity and debt over the last 3 years.

The company uses artificial intelligence (AI)-based underwriting model of US-headquartered platform Scienaptic Systems for a better early warning signal mechanism to underwrite and improve decision making while disbursing loans.