U GRO Capital, an NBFC engaged in the lending business primarily to the MSME sector, has announced the launch of Non-Convertible Debentures (NCD) of an issue size of Rs 50 crore with an option to retain oversubscription up to Rs 50 crore, aggregating up to Rs 100 crores. The Issue opens on September 5, 2022 and closes on September 22, 2022.
This issue has a tenure of 18 months, 27 months, and 36 months for secured NCDs with the series I, II, III. Effective yield (per annum) for NCD holders ranges from 10.52 per cent to 11.01 per cent. Currenty, fixed deposists give the interest rate of 5-7.5 per cent for a period of upto 3 year
Interest payment modes are Quarterly and Monthly. The amount on maturity for NCD holders in Category I, II, III and IV is Rs 1,000.
The NCDs have been rated CRISIL A-/Stable by CRISIL Ratings Ltd. and Acuite A+/Stable by Acuite Ratings and Research Limited. The NCDs are proposed to be listed on stock exchanges with NSE as the Designated Stock Exchange for the Issue.
Net proceeds of the issue will be utilised for the purpose of onward lending, repayment of interest and principal of existing borrowings and for general corporate purposes or general corporate purposes.
The Lead Managers to the Issue are Sundae Capital Advisors Private Limited and Tipsons Consultancy Services Private Limited; Link Intime India Private Limited is the registrar and IDBI Trusteeship Services Limited is the debenture trustee to the issue.
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