Capital Trust announces PTC Transaction of about INR 280 Million with U GRO Capital Limited

Capital Trust Limited (Capital Trust), a digitally enabled non-banking finance company (NBFC), specialising in providing income generating micro business loans in tier 3-5 regions, today announced that it has entered into PTC (Pass Through Certificates) transaction with U GRO Capital Limited, a technology focused small business lending platform.

This is the first time U GRO Capital and Capital Trust have come together for a PTC transaction of about INR 280 million, with amortisation of the pool tenure of 20 months. The instrument is rated BBB+ by ICRA Limited. The tie up will allow Capital Trust to enhance its liquidity and build a strong capital base. The loans underlying the pool will have monthly instalments with original maturity of up to 3 years. With this tie up, Capital Trust will be able to expand its credit portfolio of income generating micro loans among rural India's underserved population.

Commenting on this development, Mr. Yogen Khosla, Chairman and Managing Director, Capital Trust Limited, said, "This transaction is in line with Capital Trust's balance sheet light business growth model and will help the company expand its lending portfolio at a faster pace without additional burden on the books of the company. The arrangement will enable Capital Trust to expand its digital lending footprint to Tier 3-5 regions primarily in Northern India. The company will continue to enter into such tie ups in near term which will help in building a strong capital base with high liquidity."

Shares of Capital Trust Ltd. was last trading in BSE at Rs. 109.5 as compared to the previous close of Rs. 110.2. The total number of shares traded during the day was 4507 in over 118 trades.

The stock hit an intraday high of Rs. 110.95 and intraday low of 107.55. The net turnover during the day was Rs. 488257.

Shares of UGRO CAPITAL LIMITED was last trading in BSE at Rs. 119 as compared to the previous close of Rs. 116.5. The total number of shares traded during the day was 31095 in over 211 trades.

The stock hit an intraday high of Rs. 122 and intraday low of 116. The net turnover during the day was Rs. 3723916.

Source : Equity Bulls

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