The non-banking financial company said it is planning to raise up to Rs 100 crore through issue of NCDs of various maturity. The NCDs issue opened on 5 September 2022 and it will close on 22 September 2022.

The bonds are available in three series with tenors ranging from 18 months, 27 months and 36 months. The frequency of interest payment is monthly and quarterly.

Coupon for NCDs ranges from 10.15% to 10.50% per annum while effective yield (% per annum) ranges from 10.52% to 11.01%.

The NCDs proposed to be issued under the issue have been rated 'ACUITE A+' (read as ACUITE A Plus) rating with Stable Outlook by Acuite Ratings and Research and 'CRISIL A-' (read as CRISIL A minus) rating with Stable Outlook by CRISIL Ratings.

At least 75% of the funds raised will be used for the purpose of onward lending, financing and for repayment of interest and principal of existing borrowings of the company. The company intends to deploy upto 25% of the amount for general corporate purposes.

The NCDs are proposed to be listed on the BSE and the NSE. The bonds would be issued at face value of Rs 1,000 and the minimum application size is Rs 10,000 across all categories.

U GRO Capital is an MSME lending fintech platform. It uses the emerging data tripod of GST, banking and bureau coupled with its sectoral analysis to solve the problem of credit for small businesses.

The company reported a 331.8% surge in net profit to Rs 7.34 crore on 141.4% jump in total income to Rs 123.80 crore in Q1 FY23 over Q1 FY22.

Shares of U GRO Capital were down 1.70% to Rs 199 on the BSE.