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. 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. 

are going through liquidity crunch Although the NBFCs have offered moratorium to their borrowers in line with the RBI notification, they haven’t received similar reprieve from the banks to manage the liquidity crunch. However, despite offering moratorium options to its borrowers, U GRO Capital managed to redeem NCDs before the maturity date banking on its conservative asset liability mismatch and liquidity-related policies. 

“In a challenging market scenario, our ability to honour the liability underlines the strength of our business model in withstanding 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.  

A Sachin Bansal-owned entity bought NCDs worth Rs.50 crore on October 3, 2019.

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 broke even in the first year. 
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