In a liquidity crunched market, U GRO Capital redeems NCDs worth Rs.50 crore before maturity date

Mumbai, April 13th, 2020: U GRO Capital, a BSE listed, technology-enabled small business lending platform, announced that it has decided to redeem non-convertible debentures (NDC) worth Rs.50 crore with the face value of Rs. 10 lakh each before the maturity date to a company owned by Sachin Bansal. The early redemption of NCDs underlines U GRO Capital's well-capitalised business model and inherent balance sheet strength at a time when most NBFCs are struggling with liquidity stress.



The liquidity scenario has worsened in the NBFC sector as despite offering moratorium to the borrowers in line with the RBI notification, NBFCs haven't received similar reprieve from the banks. On the other hand, banking on its conservative asset liability mismatch and liquidity-related policies, U GRO Capital managed to redeem NCDs before the maturity date while complying with RBI COVId-19 moratorium policy.



"In a challenging market scenario, our ability to honour the liability commitments underlines the strength of our business model to withstand liquidity stress. We maintain the highest level of corporate governance which has led to an extremely conservative asset liability mismatch policy. We have created a granular and diversified liability line which includes multiple terms loans from PSU and private sector banks. We have also actively securitised portfolios. All these have enabled us in facilitating the early redemption of the NCDs in a pretty challenging economic environment," said Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital.



U GRO capital is one of the few tech-based small business lending platforms that have received a long-term rating of 'A' with a stable outlook and a short-term rating of 'A1' by Acuité within six months of starting its commercial operations. The company also managed to break even in the first year of operations.

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U GRO Capital limited, (formerly known as Chokhani securities) is a BSE listed, technology focused, small business lending platform. The company is focused on addressing capital needs of small businesses operating in select eight sectors by providing customized loan solutions.

U GRO mission is 'Solve the Unsolved' - the US$ 600Bn Small Business Credit Need. U GRO believes that the problem of small businesses can be solved by building deep expertise around core sectors of SMEs in India coupled with a data centric, technology-enabled approach.

The Company has raised ~INR 950 crore of capital from a diversified set of private equity funds, institutional investors and well-known family offices.

U GRO capital has shortlisted the 8 sectors basis an 18-month process involving extensive study of macro and micro economic parameters carried out in conjunction with market experts like CRISIL. The eight sectors shortlisted are Healthcare, Education, Chemicals, Food Processing / FMCG, Hospitality, Electrical Equipment and Components, Auto Components, Light Engineering.

The company strives to build a strong SME financing platform based on sectoral understanding supplemented by a fully integrated technology and analytics platform.

This release was published on openPR.