We are discussing Urgo Capital Approves Raising Upto Rs 135 Crore NCDs:
Urgo Capital is a non-banking finance company or business lending platform. The company recently approved a financial decision to increase its capital structure and expand its technical capabilities. Urgo Capital has approved the issuance of non-convertible debts worth up to Rs 135 crore and up to 2,500 NCDs, each worth Rs 1 lakh.
Urgo Capital also approved the acquisition of a Bengaluru-based finance platform, MyShubhLife, for a value of Rs 45 crore. The deal, which combines cash and equity, will see MyShubhLife as a wholly-owned subsidiary under Urgo Capital. The company aims to enhance its technology and deliver innovative credit solutions to distributors nationwide. The founder and CEO of MyShubhLife, Monish Anand, mentioned that the objective of MSL is to use the technology as a catalyst for offering innovative credit solutions across India. MSL will surrender its permit, as the RBI’s licensing rule doesn’t allow two NBFC licenses within the same entity.
During regulatory filing with BSE, Urgo Capital approved an equity capital raise of Rs 1,332 crore through compulsory convertible debentures. One of the existing investors of Urgo, Samena Capital, committed Rs 500 crore through warrants. The company has also acquired MyShubhLife for a value of Rs 45 crore. Urgo Capital had a deal to break the amount into two parts by giving Rs 28 crore to acquire 76% of MyShubhLife, and the remaining Rs 17 crore will be paid later to secure full ownership.
Now that MSL is a subsidiary under Urgo Capital, the company focuses on increasing the number of new retailers within the next two to three years. With 200,000 new retailers, an increase in AUM of Rs 15,000 crore is projected. The company is predicted to profit after tax of Rs 100 crore.
The founder and managing director of Urgo Capital, Sachindra Nath, shows confidence in this step by saying that Urgo Capital will become India’s largest MSME financing company by 2026. As the company is now entering embedded financing through MSL, its potential for disbursement is now almost 10,000 crores.
Conclusion
Urgo Capital is a non-banking finance company that has recently approved a financial decision to increase its capital structure and expand its technical capabilities. Urgo Capital has approved the issuance of NCDs up to Rs 135 crore. The company has also acquired MyShubhLife for a value of Rs 45 crore. Urgo Capital had a deal to break the amount into two parts by giving Rs 28 crore to acquire 76% of MyShubhLife, and the remaining Rs 17 crore will be paid later to secure full ownership.
The Founder and CEO of MyShubhLife, Monish Anand, mentioned that MSL’s objective is to use the technology as a catalyst for offering innovative credit solutions across India. MSL will surrender its permit, as the RBI’s licensing rule doesn’t allow two NBFC licenses within the same entity. As the company is now entering embedded financing through MSL, its potential for disbursement is now almost 10,000 crores.
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