Ugro Capital Raises Capital of Rs 1,265 Cr Through CCDs; What Chart Pattern Says?

Following the announcement that it successfully completed its equity capital raise and the allotment of Compulsory Convertible Debentures (CCD) and warrants worth Rs 1,265 Crore on Tuesday, UGRO Capital Limited shares are in focus today. At a board meeting on May 2, 2024, the company's board of directors authorised an equity capital raise of Rs 1,332.66 crore. For UGRO Capital, this is the third capital raising.

"UGRO Capital received Shareholders' approval on 1st June 2024, a period filled with the uncertainty surrounding the election results and the resultant market fluctuations. However, investor commitment in UGRO remained robust. All investors, except the ones who became ineligible for regulatory reasons, invested full money in UGRO," said the company in a statement.

With impressive support from existing private equity investor Samena Capital, who invested Rs 500 crores through warrants, the company was able to successfully allocate CCDs for Rs 258 crores and warrants worth Rs 1,007 crores. Several prominent family offices in India as well as institutional investors like Aregence made further noteworthy commitments. The management group, board of directors, and founder of UGRO all subscribed to the warrants offer. Ultimately, this capital raising brought in about 1265 crores. Current investor Samena has contributed 500 crores, while family offices of Madhusudan Kela, Mankind Pharma, Hexaware Technologies, Jai Corp, Manipal Group, Morde Foods, Alkem Lab, Gauri Khan, Burman Group, Real Ispat & Power, etc. have contributed 230 crores. A sizable fund of Singapore Aregence has invested 210 crores.

Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, said "Securing this capital raise amidst market ups and downs speaks volumes about the sheer trust our investors have in us. Our aim has always been to build a DataTech driven lending institution that is institutionally owned, independently supervised, and professionally managed, accessible to public market investors. We're now closer to our goal of helping all small businesses in India, and I have an overwhelming sense of gratitude towards all our investors, partners, and the entire UGRO team for making it happen."

Since its founding, UGRO Capital has raised a total of Rs 2,700 crores in equity capital commitments, has Rs 4,643 crores in outstanding debts from domestic and international institutions, and has worked with 13 banks and other financial institutions to carry out 3,295 crores in co-lending.

UGRO Capital Share Price Target

Anshul Jain, Head of research, Lakshmishree investments and securities Ltd said, "UGRO Capital is witnessing lower levels buying from 219 levels on the back of strong quarterly result, massive capital raise of 1333 crores and acquisition of MyShubhLife in embedded finance. The recent developments have shown the company's commitment towards its business goals and financial performance in future years. The technical parameters are suggesting a strong uptrend in the coming weeks for the levels of 350-380."

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