UGRO Capital shares: Experts give ’buy’ tag to this NBFC stock after announcement of ₹1265 crore fundraise

Stock market today: UGRO Capital shares have been on an uptrend after bottoming out at ₹215 apiece at the end of March 2024. Since then, UGRO share price has risen to ₹275 apiece level, logging around 30 percent upside in FY25. The Non-Banking Financial Company (NBFC) has declared raising funds to ₹1265 crore after a massive capital raise of ₹1333 crore, attracting stock market experts' attention. They believe that UGRO Capital shares are in the ₹250 to ₹300 range, and if the ₹300 resistance is breached, the NBFC share price may become highly bullish.

Triggers for UGRO Capital shares

Anshul Jain, Head of Research at Lakshmishree Investments and Securities, is optimistic about UGRO Capital's future. He points to the company's strong quarterly results, the massive capital raise of ₹1333 crores, and the acquisition of MyShubhLife in embedded finance as key factors driving his bullish stance. He believes that these recent developments demonstrate the company's commitment to its business goals and future financial performance. The current announcement of fundraising is seen as an additional trigger for the stock in the near term.

UGRO Capital share price target

"UGRO Capital shares are currently in ₹250 to ₹300 apiece range. UGRO Capital shares may become highly bullish and scale new highs in upcoming sessions on breaching the current hurdle. Those with this scrip are advised to hold the scrip maintaining stop loss at ₹250 apiece."

Anshul Jain said on targets that one can expect after the ₹300 breakout, “The technical parameters are suggesting a strong uptrend in the coming weeks for the levels of ₹350 and ₹380.”

UGRO Capital news

In an exchange filing, UGRO Capital announced on Tuesday the successful completion of its equity capital raise and the allotment of Compulsory Convertible Debentures (CCD) warrants worth INR 1,265 Crore. The Company's Board of Directors had approved an equity capital raise of ₹1,332.66 Crore during a board meeting on 2nd May 2024, coinciding with the peak of the Indian general elections.

Speaking on the development, Shachindra Nath, Founder and Managing Director of UGRO Capital, said, "Securing this capital raise amidst market ups and downs speaks volumes about our investors' trust in us. Our aim has always been to build a data science-driven lending institution that is institutionally owned, independently supervised, and professionally managed, accessible to public market investors. We're now closer to our goal of helping all small businesses in India. I am grateful to all our investors, partners, and the entire UGRO team for making it happen."

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.