Chokhani Securities Rebranded as UGRO Capital by the New Promoter, Shachindra Nath
Chokhani Securities, a NBFC listed in BSE has been rebranded as UGRO Capital after the acquisition by Shachindra Nath, a financial services veteran. The acquisition was done after the open offer to public shareholders and approval from Reserve Bank of India for change of control. After receiving the No Objection Certificate from RBI and approval from Registrar of Companies approved the name from Chokhani Securities to UGRO Capital subjected to shareholders and stock exchange approvals.
Chokhani Securities net worth was 40 Crores at the time of acquisition and since then the company has raised around 916 crores from private equity investors, family offices and a qualified institutional placement. This has been one of the largest fund-raising by a listed NBFC by a professional entrepreneur in the recent times.
Commenting on this, Shachindra Nath, Executive Chairman, says, “We have crossed the first step of building an institutionally backed platform to provide financing to SME and MSME in our selected segment through the combination of deep knowledge and technology. I am very humbled with the support received from diverse set of creditable institutional investors and family offices, a distinguished majority independent Board and a passionate management team and we would do everything possible to create this an institution of respect”.
The total capital was raised in three trances and the first round was announced on December 31st, 2017 by Private Equity Investors ADV Capital – 195 crores, New Quest Capital – 195 crores, Indgrowth – 45 crores in combination of and demerger of loan business of Asia Pragati, a NBFC owned and controlled by Private Equity Fund PAG Asia for 175 crores by issuance of equity.
Second round was announced on May 24th, 2018 with 130 crores by Samena Capital via issuance of Warrant and balance of 70 crores from family offices of erstwhile promoter of Luminous, Rakesh Malhotra, Jaspal Bindra, (Chairman of Centrum and Ex CEO, Asia of Standard Chartered Bank), Aditya Himtasingha of Himtsingha family, Manoj D. Rajani of Rajani Family from Goa, Taparia Family and former promoters of Famycare, Chattishgarh Investment Limited, the investment vehicle of Kamal Sarda of Sarda Energy and Mineral Limited.
The third round of capital was through a QIP which was announced on May 29th, 2018 and closed on August 13th for 113 crores with participants from PNB Metlife Life Insurance Company, Abbacus AIF setup up by Sunil Singhania, Ex – CIO of Reliance, Resonance, a FPI, the FPI arm of Samena Capital and Chattishgarh Investment.
Founded in 1993, UGRO Capitals is a SME & MSME financing platform that focuses on selected segment of the market. It bridges the gap for growth in SME’s across eight high potential sectors like Auto components, Chemicals, Education, Electrical equipment and components, Food processing & FMCG, Hospitality, Healthcare and Light engineering. UGRO believes that the problem of small businesses can be solved by building deep expertise around core sectors of SME’s in India couple with a technology platform.
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