UGRO Capital is currently devising secured, senior, listed, callable NCD bonds. These notes will be offered for sale on February 8, 2024. UGRO Capital is an Indian systemically important NBFC company. UGRO Capital NCD has NCD interest rates up to 11% and yields up to 11.03%. These NCDs are offered in 18, 24, and 27 month tenures. Interest is paid monthly, quarterly, or annually. Should you invest in UGRO Capital NCD February 2024 issue? What are the risk factors to consider before investing in UGRO NCD 2024?
About UGRO Capital Limited
The company is a non-deposit-taking systemically important NBFC registered with the RBI.
UGRO Capital’s mission is to address the chronic lack of affordable, efficient and sustainable financing, which is critical to India’s economic growth and job creation. It is about providing access to finance to the underserved MSME sector. MSMEs represent the most important organic way for the country’s poor to break out of the so-called ‘poverty trap’. Despite the challenges faced during the year of the pandemic, the company received various recognitions and awards, including:
(i) Selected as one of the top 5 digital/fintech lending companies for MSMEs by BW Disrupt and IBS Intelligence
(ii) ET Best BFSI Brand of the year award in FinTech category;
(iii) Best MSME Financing Company by World Leadership Congress and Awards;
(iv) Quick Loan Approval Award and Financing Technology of the Year Award by Financial Services Marketing Excellence National Award and several others.
UGRO Capital NCD – February 24th – Issue Details
Subscription start date | February 8, 24 |
Subscription end date | February 21, 24 |
Issued securities name | UGRO Capital Limited |
Type of security | Safe, rated, listed, redeemable, non-convertible bonds |
Publication size (base) | 100 million rupees |
Publish size (option to keep beyond subscription) | 100 million rupees |
Total publication size | 200 million rupees |
Issue price | 1,000 rupees per deposit |
face value | 1,000 rupees per deposit |
series | I to V |
minimum lot size | 10 bonds and then 1 bond |
tenure | 18, 24, 27 months |
Interest payment frequency | monthly, quarterly, yearly |
Listed | Within 6 business days for BSE/NSE |
lead manager | JM Financial Limited |
bond trustee | MITCON Credential Trusteeship Services Limited |
UGRO Capital NCD – February 24th – Interest Rate
series | I | II | Ⅲ | Ⅳ | V |
---|---|---|---|---|---|
Interest payment frequency | monthly | yearly | quarterly | monthly | yearly |
Period of employment (months) | 18 | 18 | twenty four | 27 | 27 |
Coupon (% per year) | 10.25% | 10.75% | 10.35% | 10.50% | 11.00% |
Effective yield (%/year) | 10.72% | 10.82% | 10.74% | 11.01% | 11.03% |
Amount at maturity (Rs.) | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 |
UGRO Capital NCD – February 24th issue – Credit Rating
UGRO Capital NCD rating has been assigned as IND A/Stable by India Ratings and Research Limited. Securities with this rating are considered to have sufficient security with respect to the timely repayment of financial obligations. Such securities have low credit risk.
What about the company’s profits?
The profit is as follows.
- FY2020 – 19.5 billion rupees
- FY21 – 287 billion rupees
- FY2022 – 14.5 billion rupees
- FY2023 – 397 billion rupees
- Six months ending September 23 – Rs 5,412 crore
UGRO Capital NCD – February 24th – Why invest?
- UGRO Capital NCD offers attractive interest rates, allowing investors to earn up to 11% interest and up to 11.03% yield per year.
- Issue senior NCDs and safe NCDs. These NCDs are safe compared to unsafe NCDs. If a company liquidates/goes out of business for any reason, secure NCD investors have priority repayment of their capital along with interest as it is backed by the company’s assets. Therefore, it is safe to invest in such safe NCD options.
- These NCDs are considered to have good credit ratings and are rated IND A/Stable by India Ratings and Research.
UGRO Capital NCD – February 24th – Why not invest?
- The impact of the COVID-19 pandemic on our business is uncertain and unpredictable, and may affect us in the future.
- Our directors and promoters are subject to certain legal proceedings, and adverse decisions in such proceedings could affect our business.
- A company’s financial performance is particularly sensitive to changes in interest rates.
- Significant customer defaults or delays in loan repayments could adversely affect our business.
- refer UGRO NCD Prospectus issued on February 24th Addresses complete risk factors.
How can I invest in UGRO Capital NCD Online?
This issue is available only in demat format. Log in to your demat account and check the NCD section and look for this NCD link to apply for the same.
How safe is UGRO Capital NCD?
These NCD bonds are rated IND A/Stable by India Ratings and Research Private Limited. Securities with this rating are considered to have sufficient security with respect to the timely repayment of financial obligations. Such securities have low credit risk.
UGRO Capital NCD – February 24th – Should I invest?
UGRO Capital NCD issued February 2024 offers very high interest rates of up to 11% and yields of up to 11.03%. These NCDs are rated IND A/Stable by India Ratings and Research Private Limited and are considered to be in good condition (AAA rated bonds could have been better). However, these credit ratings are subject to change in the future without notice. Since these are secured NCDs, they are safer compared to unsecured NCD bonds.
High-risk investors who are willing to take the above risks can invest in these NCDs.
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