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    U Gro Capital redeems Sachin Bansal’s NCDs ahead of schedule

    Synopsis

    The redemption has come ahead of maturity at a time when most NBFCs are struggling with liquidity stress, U Gro Capital said in a statement.

    Sachin-Bansal-
    ADV Partners, NewQuest Asia and IndGrowth have jointly invested close to Rs 900 crore in U Gro in 2017.
    MUMBAI: Technology-enabled small business lending platform U Gro Capital has redeemed non-convertible debentures (NCD) worth Rs 50 crore to a company owned by Flipkart co-founder Sachin Bansal.

    The redemption has come ahead of maturity at a time when most NBFCs are struggling with liquidity stress, U Gro Capital said in a statement.

    U Gro, set up by former Religare Finance chief executive Shachindra Nath has raised NCDs from Sachin Bansal and Poonawalla Finance Pvt. Ltd, a part of the Cyrus Poonawalla Group in October last year.

    “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,” said Shachindra Nath, Executive “Chairman and Managing Director, U Gro Capital.

    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,” he said.

    Nath, who quit as group chief executive officer at Religare Enterprises Ltd in 2016, founded U Gro after acquiring listed NBFC Chokhani Securities and merging another lending firm with it.

    ADV Partners, NewQuest Asia and IndGrowth have jointly invested close to Rs 900 crore in U Gro in 2017.

    U Gro, which began operations earlier this year, provides business loans in sector such as healthcare, education, chemicals, electrical equipment and components, and auto components, among others.



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    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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