UGRO Capital Approves ₹9.15 Billion Preferential, ₹4 Billion Rights Issue

The board of UGRO Capital Ltd. has approved the preferential issuance of compulsorily convertible debentures (CCDs) worth up to ₹9.15 billion at a conversion price of ₹185 per share. After this capital raise, the company’s capital adequacy will improve to 29.40%, up from 19.41% as of 31 March.

In the preferential allotment, Samena Capital, an existing long-term shareholder owning 7.49% of UGRO Capital, and its private equity funds will invest ₹5 billion, while Singapore-based public market investor Aregence will invest ₹1.68 billion.

The board also approved a rights issue of up to ₹4 billion. Denmark-based impact investor Investment Fund for Developing Countries, holding a 16.35% stake in UGRO, will invest ₹1.5 billion. The fund is affiliated with the Danish government.

Promoters, promoter group, and employees reaffirmed their commitment with a combined contribution of ₹340 million through the preferential and rights issues.