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

The world economy is expected to see moderate growth in 2023, projected at 3.0%, but is anticipated to slow down slightly to 2.7% in 2024. This economic growth is largely driven by Asia, despite a weaker recovery in China than expected. However, global growth in 2024 is likely to be lower, primarily due to monetary policy becoming more visible and China's subdued domestic demand, said OECD in its latest report.

U GRO Capital, a BSE listed, technology-enabled small business lending platform, will redeem non-convertible debentures (NCDs) 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, said a release from the company.

The NCD assumes significance as liquidity crunch is visible across the markets and NBFCs are facing tough time following the corona virus disease and the lockdown.

“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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