UGRO Capital approves equity capital raise of ₹1,332 crore through CCDs and warrants
Upstox
2 min read • Updated: May 3, 2024, 11:12 AM
Summary
UGRO Capital said Samena Capital, which is one of the company’s existing private equity investors, has committed ₹500 crore funding through warrants. The firm also indicated that in addition to institutional investors like Aregence, some marquee family offices, too, have committed to infuse funds via CCD and warrants.
UGRO Capital on Thursday announced its board of directors has approved an equity capital raise of ₹1,332.66 crore through compulsory convertible debentures (CCD) and warrants. Shares of the company were trading nearly 3% higher on Friday.
Samena Capital, which is one of the company’s existing private equity investors, has committed ₹500 crore funding through warrants, it said. UGRO Capital said in addition to institutional investors like Aregence, some marquee family offices, too, have committed to infuse funds via CCD and warrants.
UGRO’s founder, board members, and the management team together have committed ₹16.25 crore in warrants, the firm said. The capital raise was advised by InCred Capital, the investment banking arm of Incred Group.
This is the third fund raising done by UGRO Capital. In 2018, the firm’s founder and managing director acquired control of Chokhani Securities and simultaneously raised institutional equity capital of ₹914 crore from TPG NewQuest, PAG, ADV Capital, Samena Capital and other domestic family offices and public market investors.
UGRO Capital said it has ensured the capital required for both the current year's growth and next year's growth has been effectively locked in at present.
Meanwhile, the firm also announced its fourth quarter and fiscal year 2024 results on Friday. Total revenue rose 52% year-on-year (YoY) to ₹330.4 crore during the fourth quarter while net profit rose 133% YoY to ₹32.7 crore. Last year, UGRO Capital raised ₹340.5 crore.
The firm’s assets under management rose 49% YoY to ₹9,047 crore during the quarter. Asset quality deteriorated marginally with gross non-performing assets (NPAs) rising 40 basis points (bps) YoY to 2% while net NPAs rose 20 bps to 1.1%.
For FY24, the company reported a 58% YoY rise in its total revenue at ₹1,081.7 crore. Net profit rose 200% to ₹119 crore during the year.
Shares of the company have risen over 6% since the beginning of the year. The stock has risen over 52% in the last one year.