Facebook-Bonds India

UGRO Capital Limited IPO April 2022 - Invest in UGRO Capital NCD IPO

Neeraj

Neeraj

Apr 08, 2022

115 0
how-to-invest-in-ugro-capital-ncd-ipo-april-2022

UGRO Capital Limited IPO April 2022 - Invest in UGRO Capital NCD IPO

“Why wait for the right time – Make your time right by investing in U GRO IPO”
Feel the wave of capital preservation. Contact your near and dear ones. Call if you have to, but don’t miss out on the bidding of the IPO bond. UGRO Capital Limited IPO is all set to open the gates for investors for IPO bidding in April this year.
U GRO Capital Limited is a non-deposit-taking systemically important NBFC registered with the RBI and the equity shares of the Company are listed on NSE and BSE. U GRO Capital lends exclusively to MSMEs and caters to all the borrowing needs through its diverse range of product offerings like Term Loan (Secured and Unsecured), Supply Chain Financing, Machinery loans, and Short-term financing through its multiple FinTech and NBFC Partners.
The U GRO Capital Limited NCD IPO has been rated “ACUITE A+” and provides interest up to 10.40 %, up to a tenure of 36 months. All you need to do is set a reminder on the BondsIndia.com website and place your bid as we send you a reminder when it goes live.

About the NCD Issue (company stats, standings, etc.)

Issuer The U GRO Capital Limited
Type of instrument Secured, Redeemable, Non-Convertible Debenture
Listing To be listed on BSE and NS
Issue Size ₹ 5,000 lakhs with an option to retain over-subscription up to ₹ 5,000 lakhs, aggregating to a total of ₹ 10,000 lakhs.
Issue Price Rs. 1000 per NCD
Minimum Investment 10 NCDs (Rs.10, 000) & in multiple of 1NCD
Issue Opening Date Thursday, April 07, 2022
Issue Closing Date Thursday, April 28, 2022*
*Issue may close on such earlier date or an extended date as may be decided by the Board of Directors of the Company or Securities Issuance Committee thereof.
Mode of Issuance Dematerialized only  

ISSUE STRUCTURE

Series
I
II
III
Frequency of Interest payment
Quaterly
Monthly
Monthly
Minimum Application
Rs 10000 (10 NCDs) across all Series
Face Value/Issue Price
Rs 1000
In multiples of thereafter
Rs 10000 (1 NCD)
Tenure
18 Months
27 Months
36 Months
Coupon (%per annum) for NCD Holders
10.00%
10.15%
10.40%
Effective Yield (per annum) For NCD
10.37%
10.62%
10.90%
Mode of Interest Payment
Through various mode availabe
Amount (NCD)on Maturity for NCD Holders
1,000
1,000
1,000
Maturity / Redemption Date (years from the Deemed date of Allotment)
18
Months
27
Months
36
Months
Put And Call Option
NA
NA
NA
Series
I
II
III
Frequency of Interest payment
Quaterly
Monthly
Monthly
Minimum Application
Rs 10000 (10 NCDs) across all Series
Face Value/Issue Price
Rs 1000
In multiples of thereafter
Rs 10000 (1 NCD)
Tenure
18 Months
27 Months
36 Months
Coupon (%per annum) for NCD Holders
10.00%
10.15%
10.40%
Effective Yield (per annum) For NCD
10.37%
10.62%
10.90%
Mode of Interest Payment
Through various mode availabe
Amount (NCD)on Maturity for NCD Holders
1,000
1,000
1,000
Maturity / Redemption Date (years from the Deemed date of Allotment)
18
Months
27
Months
36
Months
Put And Call Option
NA
NA
NA

Financial Performance (Rs. Crores)

( in crore)

Particulars For Nine Months Period
Ended December 31,2021
March 31,2021 March 31,2020
Total Income 199.29 153.33 105.14
Total Expenditure 187.15 141.20 101.83
Profit after tax 8.45 28.72 19.52
Net Worth 959.08 952 911.06
Debt to Equity ratio 1.84 0.82 0.28
CRAR (%) 36.06 65.60 88.25
Return on Net worth (%) 1.18 3.06 2.14

*Annualised

ugro-finance-april-2022
Key Strengths
  • Strong Corporate Governance Standards - The Company was founded with the philosophy of being institution owned, board controlled, and management run. The U GRO Capital’s Board is majorly independent and comprises financial industry luminaries with expertise from across the array of financial services viz lending, regulations, rating agency, etc. The Governance standards are further strengthened by strong policies and processes enshrined in the Articles of Association. U GRO Capital has also opted to be a listed entity from day one, which demands a higher degree of regulatory oversight and transparency.
  • Experienced Leadership Team - The company has able senior management that works to build the systems and processes with a larger time frame in mind. To that effect, the company hired industry leaders that have a proven track record of delivering results & possess the right acumen necessary in the build-out phase of any organization. Setting the right team in place has helped the company tide through the crisis effectively.
  • Large Institutional Capital - The company is institutionally owned and professionally governed. The Company has specifically decided to raise a huge institutional equity capital right from the start. U GRO Capital closed one of the largest fund-raises for a start-up in India, raising around ₹ 920 Crores from a diverse group of investors as it embarked on the stated mission of U Gro. Raising this capital has helped the Company to have adequate capital based to grow in the first few years. Having a large institutional capital is also perceived positively by lenders & the company has been able to solidify its position in terms of the liability book. As of December 31, 2021, 89.11% of the paid-up share capital of the Company is held by institutions / private equity funds like ADV Partners, New Quest, Samena Capital, PAG, IndGrowth, PNB Metlife, Chhattisgarh Investments.
Credit Risks
  • Average asset quality:
    The asset quality of the company has witnessed some stress over the past few quarters with gross non-performing asset (GNPA)and net non-performing asset (NNPA)increasing to 2.66 % and 1.59 % respectively, as of March 31, 2021. The said ratios deteriorated mainly on account of high slip pages in the non-housing loan book and shrinkage in the asset base. However, the company has managed to restrict asset quality from further deterioration with the reduction in slippages to NPA and maintaining healthy collection efficiency levels as of Sep 30, 2021. GNPA and NNPA of the Company stood at 2.69% and 1.53%, respectively as of Sep 30, 2021. The management’s continuous focus is to scaled own its corporate loan book which is more vulnerable to the real estate sector risk, contributing~14% of the total AUM. Further, the company continues to derive comfort from the credit appraisal system, risk management policies, its focus on reducing exposure through refinance and prepayments, and demonstrated ability to recover dues from borrowers.
  • Subdued profitability levels:
    The Company’s profitability levels were impacted due to falling income levels on the back of shrinkage of loan book, high provisioning due to the impact of COVID-19 pandemic and falling of NIM due to sell down of high-yielding developer loan portfolio coupled with high credit costs as on Sep30,2021. The Company reported PAT of Rs.568.03 Crs (ROA & ROE of 1.25% & 7.15%, respectively) as of Sep30,2021 compared to Rs.596Crs (ROA & ROE of 1.26% & 7.09%, respectively) as of Sep30,2020. The company believes that its profitability levels are expected to remain subdued in the current financial year owing to restricted AUM growth along with the high cost of borrowings.
how-to-invest-in-ugro-capital-ncd-ipo-april-2022

How to invest in Ugro Capital NCD IPO April 2022

Why choose Bonds India?

BondsIndia is an online platform for fixed-income securities such as IPOs, bonds, 54EC bonds and fixed deposits. With a cumulative pedigree of 50+ years in the bond market, we aim to democratize the market for common investors by stationing detailed insights, expert advice, and keeping a close watch on the market sentiment. BondsIndia brings up-to-date information when IPOs go live, fixed deposits with higher interests, and bonds with competitive price before anyone else.

BondsIndia ditches the traditional ways of investing by offering a blockchain-based platform for investors that ensures instant online settlements and reduces counter-party risks. Choose Bonds India for its sleek interface, fail-safe communication and step-by-step guide to ensure a well-placed bid. You can apply for U Gro Capital NCD IPO on BondsIndia.com website.

Place you bid in three simple steps

Key in Basic Details > Choose the IPO Series > Place the bid

How to invest in Ugro Capital NCD IPO April 2022?

Application process on Bonds India platform is simple and seamless.
  • Click on Apply Now in Ugro Capital NCD IP Page.

  • Fill in the Application form with the basic details such as Name, email address, mobile number, Pan details, bank and demat details).

  • Then, confirm the quantity and price and select payment method.

  • That’s all folks bidding complete!

Reach out to on info@bondsindia.com for more questions. Thank you for tuning in with Bonds India.
Leave a Comment-

Your email address will not be published. Required fields are marked *

Post a reply
Submit form below to Contact Us.
Recent Posts