1 / 13

U GRO Capital NCD IPO – Should You Invest ?

Explore U GRO Capital's NCD IPO, offering attractive interest rates and secured returns. Learn about its features, risks, and benefits to make an informed investment decision. Discover if it aligns with your financial goals.<br><br>Visit Website: https://goldenpi.com/blog/investment-guide/ncd-ipo/u-gro-capital-ncd-ipo-october-2024-should-you-invest/

goldenpi
Download Presentation

U GRO Capital NCD IPO – Should You Invest ?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. U GRO Capital NCD IPO – Should You Invest?

  2. Introduction • U Debentures (NCDs), rated IND A+/Stable, offering high-yield opportunities with coupon rates ranging from 10.15% to 10.40% across three tenures: 18, 24, and 30 months. Secured and redeemable, these NCDs aim to attract investors seeking stable returns higher than traditional FDs. GRO Capital is issuing Non-Convertible

  3. U GRO Capital NCD Series Details • Coupon Rates and Effective Yields Investors can choose between different series with coupon rates of up to 10.4%. Each series provides an effective yield based on tenure, creating options for investors based on their preferred time horizon.

  4. Allocation Ratio • Category-Wise Allocation • The allocation ratio is pre-determined according to SEBI guidelines and helps ensure balanced distribution across investor categories. Once the IPO subscription closes, applications are sorted into categories, and allocations are made accordingly.

  5. Investment Process • Simple Online Investment ⚬Investing in U GRO Capital’s NCD IPO via platforms like GoldenPi involves a quick, three-step online process for amounts up to ₹10 lakhs. Higher investments may require additional steps, streamlining accessibility for retail investors.

  6. Financial Overview • Key Financials: Revenue, Expenses, EBIT, Net Worth, and PAT ⚬U GRO’s recent financials include robust revenue growth, stable EBIT, and an expanding net worth, demonstrating financial strength to support its growth strategy.

  7. Cash Flow Analysis • Cash Flow Movement Over Five Years ⚬Operating cash flow reflects income from core lending activities, while investing cash flow shows capital use for asset purchases and security sales. Financing cash flow highlights the company's debt management strategies.

  8. Issue Analysis • Pros ⚬IND A+ rating provides credibility and a stable outlook. ⚬High coupon rate of up to 10.4%, offering better returns than traditional bank deposits. • Cons ⚬Decreasing Interest Coverage Ratio signals potential challenges in meeting debt obligations.

  9. Company Overview • About U GRO Capital ⚬U GRO Capital, formerly Chokhani Securities, was acquired in 2018 and refocused on MSME lending under leadership by Shachindra Nath. With an expansive branch network and a publicly traded status, U GRO is a prominent player in MSME financing.

  10. Strengths • Key Strengths of U GRO Capital ⚬Rapid AUM Growth: Multi-fold AUM growth to INR 92.2 billion by 1QFY25. ⚬Diversified Portfolio: Balanced regional and sectoral distribution. ⚬Strong Capital Buffers: Maintains a CAR of 20.75%, enabling future growth. ⚬Strategic Co-Lending Partnerships: Collaborates with public sector banks. ⚬Technology Integration: Uses data-driven processes for loan monitoring.

  11. Weaknesses • Challenges Facing U GRO Capital • Limited Operational History: Relatively new, with most AUM generated in the last year. • Elevated Credit Costs: High gross NPA rate and cost-to-income ratio. • Operational Expansion Costs: Large branch expansion plan impacts operational costs. • Leverage Risks: Target leverage ratio of 4.0x could stress finances if asset quality weakens.

  12. Conclusion • Summary ⚬U GRO Capital’s NCD IPO offers a high-yield investment option for those looking to surpass bank FD returns. With a solid financial structure and stable rating, it presents opportunities alongside some risk factors, making it ideal for those with moderate risk tolerance seeking diversified income sources.

  13. Thank you! To know more, visit: https://goldenpi.com/blog/investment-guide/ncd-ipo/u-gro-capital-ncd-ipo-october-2024-should-you-in vest/

More Related