UGRO Capital surges 6% on Rs 1,400 crore acquisition of Profectus Capital
By Aman Shukla Published on June 18, 2025, 09:15 IST
Shares of UGRO Capital jumped 6% in morning trade after the company announced the acquisition of Profectus Capital in a ₹1,400 crore all-cash deal. The acquisition marks a major milestone in UGRO's growth strategy in the MSME lending space.
The deal will be funded through a mix of the recently concluded ₹950 crore capital raise and ₹450 crore via internal accruals or alternate sources. Post-transaction, Profectus Capital will become a wholly owned subsidiary of UGRO.
The acquisition is expected to be immediately accretive. UGRO's Assets Under Management (AUM) will rise 29% to ₹15,471 crore. The company also anticipates ₹150 crore in annualised profit addition, cost synergies of ₹115 crore, and an improvement in Return on Assets (ROA) by 60–70 basis points.
Profectus brings a secured loan book with an AUM of ₹3,468 crore and a low gross NPA of 1.6% as of March 2025. It operates in seven states through 28 branches. The acquisition gives UGRO access to new borrower segments, including school finance and embedded finance, with an estimated ₹2,000 crore market opportunity.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
Ahmedabad Plane Crash
Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at BusinessUpturn.com
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