UGRO Capital Launches Public Issue of Secured, Rated, Listed, Redeemable Non-Convertible Debentures

Key Takeaways from the Launch

• UGRO Capital's public issue of NCDs has a face value of ₹1,000 each, with a base issue size of ₹10,000 lakhs and an option to retain oversubscription up to ₹20,000 lakhs.
• The effective annualised yield for the NCDs is up to 10.91% per annum.
• The issue is open from October 10 to October 23, 2024, with an option for early closure.
• The NCDs are rated “IND A+/Stable” by India Ratings, indicating strong safety for investors.

This public issue has a base size of ₹10,000 lakhs, with an option to retain oversubscription of up to ₹10,000 lakhs, aggregating to a total of ₹20,000 lakhs. The effective annualized yield on these NCDs is up to 10.91% per annum.

The issue will remain open from October 10, 2024 to October 23, 2024. Nevertheless, if the same is closed earlier to the said dates, then the same would be governed by Regulation 33A of the SEBI NCS Regulations. The NCDs are proposed to be listed on Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with NSE being the designated exchange for the issue. Debentures have been rated "IND A+/Stable" by India Ratings and Research Private Limited, signifying the undertaking has a very high safety level regarding the timely servicing of financial obligations.

UGRO Capital's NCDs will have tenures of 18, 24, and 30 months, with effective yields to investors in all categories of 10.64% to 10.91% per annum. Every NCD would be redeemed for ₹1,000 on maturity. All the capital raised through this issue would go for the company's onwards lending and financing business, out of which at least 75% would be utilised for these purposes and a maximum of 25% toward general corporate purposes.

As of March 31, 2024, UGRO Capital's Capital Adequacy Ratio (CRAR) stood at 20.75%, improving to 27.94% for the quarter ending June 30, 2024. The company’s assets under management (AUM) have shown remarkable growth, increasing from ₹2,96,890.60 lakhs on March 31, 2022, to ₹9,21,772.71 lakhs by June 30, 2024. The average ticket size for loans stood at ₹13.66 lakhs, with an average lending rate of 16.66% per annum.

About Ugro Capital Limited  

Ugro Capital Limited is a technology-driven lending for small businesses focused on a data-centric approach to addressing the needs of small enterprises in capital across eight key sectors. Ugro Capital provides financing options that include supply chain financing, unsecured business loans, machinery loans, property-secured business loans, innovative financial products, and loans for microenterprises.

Key Takeaways from Drug Approval

• Alkem secures exclusive rights to develop and commercialise "SON-080" in India.
• "SON-080" has shown encouraging clinical trial results, particularly in pain relief and quality of life improvements for diabetic peripheral neuropathy patients.
• This partnership aims to address the growing burden of diabetes-related complications in India, where neuropathy is highly prevalent.

The drug candidate "SON-080," Sonnet's proprietary version of atexakin alfa, has thus far provided promising results from its phase 1b clinical trials. It seemed well tolerated, and the data showed that the patients' symptoms of peripheral neuropathy resolved with great rapidity and were persistent post-dosing compared to placebo controls.

Under the agreement, Alkem will spearhead the clinical development of "SON-080" in India. Meanwhile, Sonnet shall support Indian as well as international filings for regulatory purposes. Alkem will hold exclusive rights to manufacture and market the medicine in India; this is aimed at reducing the heavy burden of complications related to diabetes within the country. Diabetic peripheral neuropathy forms 62% of the patients who suffer from diabetes in India, which is a primary cause of more serious complications like the injuries in feet and limb amputations.

Commenting on the agreement with Sonnet, Dr. Akhilesh Sharma, President and Chief Medical Officer of Alkem, said, “We are pleased to partner with Sonnet for this programme. We believe “SON-080” is a unique asset that has demonstrated promising disease modifying potential for diabetic peripheral neuropathy with translational studies showing nerve regeneration. There is a large prevalence of diabetic peripheral neuropathy in India, which we believe underscores the need for the drug development in this territory and potential value.” 

Pankaj Mohan, Founder and Chief Executive Officer of Sonnet, commented, “We are excited to partner with Alkem and look forward to advancing “SON-080” into phase 2 clinical development. We believe that Alkem is the ideal partner with significant experience and expertise.”

About Alkem Laboratories Limited.

Alkem Laboratories Ltd. is one of India's leading pharmaceutical companies that has served 50 years of quality medicine. The company stands as one of the fifth-largest pharmaceutical companies in India, with strong positions in anti-infectives, gastrointestinal, and pain management therapy. Alkem also provides a growing portfolio in the treatment of chronic conditions in diabetes, neurology, cardiology, dermatology, and urology. With 19 advanced manufacturing facilities and R&D centres across India and the US, Alkem develops and manufactures generic formulations, APIs, and biosimilars, serving markets in India, the US, Latin America, Australia, and Asia.

About Sonnet BioTherapeutics Holdings, Inc.

Sonnet BioTherapeutics is a biotechnology company focused on oncology, leveraging its proprietary FHAB (Fully Human Albumin Binding) platform to develop targeted biologic drugs. The fully human single-chain antibody fragment (scFv) utilised binds to human serum albumin (HSA), thereby providing for this platform's accurate targeting to tumour and lymphatic tissues. This class of immune-modulating biologic therapies can be improved in terms of safety and efficacy, therefore opening its applications within the FHAB platform among several therapeutic classes—cytokines, peptides, antibodies, and vaccines.

Key Takeaways from Suzlon Energy Partnership with Jindal Renewables:

• Suzlon Energy partnered with Jindal Renewables to develop a 400 MW captive wind power project, marking Jindal Group's first venture into wind energy.
• This project is the largest commercial and industrial (C&I) wind energy order in India.
• Suzlon will install 127 wind turbine generators in the Koppal region of Karnataka, each with a capacity of 3.15 MW.
• The electricity generated will power steel plants in Chhattisgarh and Odisha, enhancing sustainability in steel production.

The project marks the first foray into wind energy for Jindal Group and is the largest commercial and industrial (C&I) order of its kind in India. 

Suzlon will install 127 wind turbine generators in the Koppal region of Karnataka, each with a capacity of 3.15 MW. 

The electricity generated will be used to power steel plants in Chhattisgarh and Odisha, promoting sustainability in steel production.

About Jindal Renewable Power Private Limited (JRPL):

Jindal Renewable Power Private Limited (JRPL is focused on leading renewable energy initiatives in India, currently working on nearly 3 GW of various renewable projects with secured power contracts. The company plans to expand its portfolio to approximately 12 GW by 2030, which will include renewable energy assets, storage solutions, and significant green hydrogen production facilities, positioning itself as a major player in carbon reduction in the country.

About Suzlon Group:

The Suzlon Group is a prominent provider of renewable energy solutions globally, with around 20.8 GW of wind energy capacity installed in 17 countries. Based in Pune, India, Suzlon encompasses Suzlon Energy Limited and its subsidiaries. The organization features in-house research and development centers in Germany, the Netherlands, Denmark, and India, along with manufacturing facilities across India. With over 29 years of experience, Suzlon employs more than 6,400 people and holds the title of India’s leading wind energy service company, boasting a service portfolio of over 14.8 GW. The Group also has around 6 GW of capacity installed outside India and offers a range of products, including its 2 MW and 3 MW wind turbines.

Key Takeaways from the Hyundai Motor India Limited IPO

• Up to 142,194,700 equity shares will be offered through a 100% offer for sale by the promoter, Hyundai Motor Company.
• Shares are priced between ₹1865 and ₹1960, with a discount of ₹186 for eligible employees.
• The minimum bid lot is 7 equity shares, with a maximum subscription amount of ₹2,00,000 for retail investors and ₹5,00,000 for eligible employees.
• The IPO opens for bidding from October 15 to October 17, 2024, with anchor investor bidding starting on October 14, 2024.
• The book running lead managers are Kotak Mahindra, Citigroup, HSBC, J.P. Morgan, and Morgan Stanley, with sponsorship from HDFC, Axis, ICICI, and Kotak Mahindra Banks.

This is a 100% offer for sale by Hyundai Motor Company, and the entire proceeds will go to the selling shareholder. The issue type is classified under 100% book building offering, and the price band has been set between ₹1865 to ₹1960 per equity share. Employees eligible for the offer will get a discount of ₹186 on every equity share.

The face value of each equity share is ₹10, with a tick size of Re.1. The bid lot is set at 7 equity shares, with multiples thereof as the minimum order quantity. The maximum subscription amount for retail investors is ₹2,00,000, while eligible employees can subscribe for up to ₹5,00,000. IPO market timings will be from 10:00 a.m. to 5:00 p.m. 

The IPO will tentatively begin with Anchor Investor Bidding on Monday, October 14, 2024, followed by the IPO Opening on Tuesday, October 15, 2024, and closing on Thursday, October 17, 2024. 

In relation to reservations, 50% of the net offer is required for Qualified Institutional Buyers, and not less than 15% should be kept for Non-Institutional Investors. Meanwhile, 35% is reserved for Retail Individual Bidders. Equity shares up to 778,400 would also be reserved for employees. 

The Book Running Lead Managers for this IPO are Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited, and Morgan Stanley India Company Private Limited. The sponsor banks for the IPO include HDFC Bank Limited, Axis Bank Limited, ICICI Bank Limited, and Kotak Mahindra Bank Limited.

About Hyundai Motor India Limited

Hyundai Motor Group is the third largest auto OEM in the world based on passenger vehicle sales. It offers four-wheeler passenger vehicles that are reliable, feature-rich, and innovative, backed by the latest technology. The company also manufactures auto parts such as transmissions and engines. The company provides mobility solutions by having 1,366 points of sales and 1,550 service points across India. Until 31 March 2024, the company has sold almost 12 million passenger vehicles in India and through exports. The four-wheeler passenger vehicle manufacturing segment of the company consists of the manufacturing and sale of sedans, hatchbacks, SUVs, and electric vehicles.

The models produced by the company are Grand i10 NIOS, i20, i20 N Line, AURA, Elantra, Venue, Venue N Line, Verna, Creta, Creta N Line, Alcazar, Tucson, and the all-electric SUV Ioniq 5. HMIL has a production unit close to Chennai that can manufacture all its vehicle models. The group exports its products to Africa, the Middle East, Bangladesh, Nepal, Bhutan, and Sri Lanka.