Net profit jumps 133 per cent: This NBFC has announced a fund raise amounting to Rs 1,332 crore!
The substantial uptrend in both AUM and PAT reflects strong performance and financial strength during the specified period.
Today, the shares of Ugro Capital Limited zoomed by 1.04 per cent. Additionally, the scrip witnessed a spurt in volume by more than 6.87 times. The company's current market capitalization standing at Rs 2,593.20 crore.
Share Performance:
On Friday, the stock opened at Rs 299.65, with the previous closing being Rs 283.55. The 52-week high and low are Rs 319.85 and Rs 186.10, respectively as per BSE.
Recent Development:
The company has announced a significant equity fund raise amounting to Rs 1,332 crore through a preferential issue. This fund raise will be facilitated through the issuance of two equity instruments: Compulsorily Convertible Debentures (CCD) and Warrants.
The subscription amount for these instruments is allocated as follows: approximately Rs 275 crore for CCDs and approximately Rs 1,057 crore for warrants. Both CCDs and warrants are structured to convert into equity shares within a period of 18 months.
This strategic move aims to bolster the company's financial position and support its growth initiatives by injecting fresh capital into its operations. The issuance of CCDs and warrants provides the company with the flexibility to raise funds while also aligning with its long-term objectives.
Furthermore, zooming in the Q4FY24 financial highlights:
- Assets Under Management (AUM) in Q4FY24 rose to Rs 9,047 crore, a notable increase of 49 per cent from the Rs 6,801 crore reported in Q4FY23.
- Profit After Tax (PAT) surged to Rs 33 crore in Q4FY24, showcasing remarkable growth compared to Rs14 crore in Q4FY23, marking an exceptional 133 per cent increase.
The substantial uptrend in both AUM and PAT reflects strong performance and financial strength during the specified period.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
About the Company:
Ugro Capital Limited stands out as a technology-focused lending platform with a keen emphasis on leveraging data and technology to serve small businesses. Specializing in providing tailored loan solutions, the company targets the capital requirements of small businesses across eight specific sectors. By adopting a data-centric and technology-enabled approach, U GRO Capital aims to address the unique financial needs of small businesses, facilitating their growth and sustainability in the market.
Furthermore, the stock has experienced significant buying activity, yielding returns of more than 49 per cent in the last one year.
Disclaimer: The article is for informational purposes only and not investment advice.