UGRO Capital Launches ₹400 Crore Rights Issue at ₹162 to Fuel MSME Credit Growth

UGRO Capital, a data-driven lender focused on supporting India’s small businesses, has unveiled a ₹400 crore rights issue. Priced at ₹162 per share, the offering aligns with the company’s ongoing efforts to scale lending capacity and reinforce financial resilience, following its earlier ₹915 crore CCD raise.

Enhancing Shareholder Participation and Institutional Backing
The rights issue allows shareholders to subscribe to 50 new equity shares for every 189 held, with the window open from June 13 to June 20, 2025. The record date is June 5. By aligning the rights issue price with the earlier CCD issuance, UGRO signals a balanced capital strategy between public and institutional investors.
So far, UGRO has secured ₹250 crore in commitments. This includes ₹150 crore from IFU, Denmark’s government-backed investment fund, and ₹34 crore from UGRO’s promoter group and employees. The institutional support reflects confidence in the company’s credit-led growth model.

Financial Performance and Technology Integration
UGRO’s fiscal results for FY25 reinforce the logic behind the rights issue. The company reported Assets Under Management of ₹12,003 crore, reflecting a 33 percent year-on-year increase. Profit before tax rose to ₹203 crore. The company maintained a return on assets of 2.9 percent and a return on equity of 9.4 percent. Earnings per share stood at ₹15.7, and book value per share was reported at ₹219.6【178†source】【179†source】.
These financial outcomes are driven by UGRO’s technology initiatives. The company leverages GRO Score 3.0, a statistical model used for credit scoring; GRO Chain, a supply chain finance system; and GRO Xstream, a platform facilitating co-lending. Additionally, UGRO supports MSMEs with embedded finance options delivered via its GRO X application.

Leadership Outlook
Founder and Managing Director Shachindra Nath noted that the capital raise reinforces the company’s intent to grow responsibly while allowing public shareholders a fair stake. He emphasized that this inclusive offering mirrors the pricing of preferential investors, strengthening alignment across the shareholder base.

Path Ahead and Use of Capital
The rights issue is aimed at financing the company’s expansion strategy, which includes increasing its branch footprint from 212 to 400 locations. UGRO also seeks to enhance its MSME disbursement operations and deepen its integration with embedded finance platforms. Post-fundraise, the company expects to maintain a capital adequacy ratio of over 29 percent【179†source】.

Strategic Advisors
InCred Capital serves as the financial advisor, while SNG & Partners provides legal counsel for the transaction.
About UGRO Capital (NSE: UGROCAP | BSE: 511742)
UGRO Capital is a listed NBFC focused on small business financing in India. With its emphasis on data-led underwriting and a network of co-lending and fintech partners, it aims to bridge the MSME credit gap using scalable, tech-driven models. UGRO is backed by global investors including IFU, Samena Capital, and Aregence.
For more, visit www.ugrocapital.com
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