Latest news with #Profectus
Indian Express
8 hours ago
- Business
- Indian Express
UGRO Capital acquires Profectus for Rs 1,400 crore
UGRO Capital has executed a share purchase agreement with the existing shareholders of Profectus Capital Pvt Ltd to acquire 100 per cent stake in the firm in a Rs 1,400 crore deal. This all-cash deal, with the consideration payable in a single tranche at closing, will mobilize proceeds from UGRO's recently announced equity raise and deploy capital into a fully secured asset portfolio delivering instant scale benefits with zero origination costs, making Profectus a wholly-owned subsidiary, it said. Profectus has assets under management of Rs 3,468 crore as of March 2025, with presence across seven states.
New Indian Express
8 hours ago
- Business
- New Indian Express
Ugro acquires Profectus Capital in Rs 1,400 crore all-cash deal
MUMBAI: Small businesses focused non-bank lender Ugro Capital has announced the takeover of Profectus Capital for Rs 1,400 crore under which it will acquire 100% of shares of from the promoters of Profectus. Post this all-cash deal, Profectus will become a wholly owned subsidiary of Ugro, the company said in a statement Tuesday. Ugo expects the acquisition to add around Rs 150 crore to its annual profit. The acquisition will also drive Ugro's loan book by 29% helping it diversify the loan portfolio such as school financing, secured loan against property, machinery finance, and supply chain finance. Profectus has a assets under management up to Rs 3,468 crore as of March 2025, with presence across seven states through a 28-branch network and over 800-member team, said Shachindra Nath, founder and managing director of Ugro and KV Srinivasan, chief executive of Profectus.
Mint
9 hours ago
- Business
- Mint
UGRO Capital to acquire Profectus Capital in a ₹1,400 crore all-cash deal
Mumbai: UGRO Capital, a data-tech MSME (micro, small and medium enterprises) lending platform, is set to acquire Profectus Capital Pvt. Ltd from UK-based private equity firm Actis' companies Actis PC (Mauritius) and Actis Investment (Mauritius) in an all-cash deal amounting to ₹ 1,400 crore, the lender notified the exchanges late on Tuesday. UGRO will use the proceeds from the recent equity raise for the acquisition, with the objective of deploying capital into a 'fully secured asset portfolio delivering instant scale benefits with zero origination costs,' it said in a release. Profectus' secured lending business complements and aligns with UGRO's data-driven underwriting platform. 'To facilitate the discharge of purchase consideration for the proposed acquisition, the company is proposing to add financing of Profectus' acquisition as an object of the existing preferential issuance of compulsorily convertible debentures by seeking fresh approval from the board and shareholders,' UGRO said adding the deal is also subject to the approval of the Reserve Bank of India (RBI) and shareholders. InCred Capital acted as advisor to UGRO Capital on this acquisition, and SNG & Partners was the legal counsel. PriceWaterHouse Coopers Services LLP was appointed for financial due diligence, and Legacy Growth Partners for tax due diligence. DC Advisory and Avendus were the advisors for Profectus. After the acquisition, Profectus will become a wholly-owned subsidiary of UGRO Capital, and is estimated to add around ₹ 150 crore of annualized profit to UGRO, it said, adding that this makes it a 'capital adequacy accretive transaction'. The companies expect significant geographic and product alignment in secured LAP (loans against property), machinery finance, and supply chain finance, which is seen as driving operational efficiencies. 'This strategically priced acquisition deploys our equity raise to achieve instant scale and ₹ 115 crore cost savings and annualized incremental profitability of ₹ 150 crore, thus boosting ROA (return on assets) by 0.6–0.7%,' said Shachindra Nath, founder and managing director of UGRO Capital. As of March 2025, Profectus had assets under management of ₹ 3,468 crore and a presence across seven states through a 28-branch network and over 800-member team. The company's gross non-performing assets (NPA) ratio is 1.6%, and its net NPA is 1.1%. Acquiring company UGRO's AUM is expected to increase 29% post-deal, which is expected to help diversify its portfolio and accelerate expansion of the high-yield 'emerging markets' and 'embedded finance' business lines. The deal will also add a new product to the company's bouquet—school finance—where UGRO sees a medium-term financing potential of ₹ 2,000 crore, the company said. As of March 2025, UGRO Capital had assets of ₹ 12,003 crore, up 33% on the previous year. Net disbursements for the year were 57% higher at ₹ 2.436 crore. The lender posted a profit after tax of ₹ 40.5 crore for the year. The company's gross NPA ratio was 2.3%, and its net NPA ratio was 1.6% as of the end of FY25. UGRO is a major player in the co-lending market in India with relationships with 17 banks and non-banking financial companies (NBFCs). A sizeable 42% of the company's AUM is off-balance sheet through co-lending and co-originating partners. The NBFC raised ₹ 900 crore of equity capital in 2018, another ₹ 340 crore in 2023 and ₹ 1,265 crore in 2024. The company aims to capture 1% market share over the next three years.
Economic Times
10 hours ago
- Business
- Economic Times
UGRO Capital to acquire Profectus Capital for ₹1,400 cr
UGRO Capital Limited, the DataTech NBFC focused on MSME lending, has acquired Profectus Capital Private Limited, for ₹1400 crore, company said on Tuesday. This all-cash deal, with the consideration payable in a single tranche at closing, will make Profectus a wholly owned subsidiary. Ugro signed a share-purchase agreement with existing investor - British private equity firm Actis, it said. This acquisition would add approximately ₹150 crore of annualized profit to UGRO making it a capital adequacy accretive transaction, it said. Profectus has demonstrated stable portfolio expansion, building its assets under management to ₹3,468 crore as of March 2025, with presence across seven states through a 28-branch network and over 800-member team, all while maintaining a gross NPA of 1.6% and Net NPA of 1.1%, it added. Both entities will maintain current operations and strategy during Nath, Founder and Managing Director of UGRO Capital, said, 'This strategically priced acquisition deploys our equity raise to achieve instant scale and ₹115 Crores cost savings and annualized incremental profitability of ₹ 150 crore thus boosting ROA by 0.6–0.7%."K.V. Srinivasan, Executive Director & CEO, Profectus Capital, added, 'The coming together of the two organisations would be beneficial owing to the synergies and complementarity of the businesses, which should result in greater operational efficiency and profitability for the business."
Time of India
10 hours ago
- Business
- Time of India
UGRO Capital to acquire Profectus Capital for Rs 1,400 crore cash deal
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Non-bank lender UGRO Capital is all set to acquire Profectus Capital Private Limited for Rs 1400 crore in an all-cash deal, the company announced acquisition will help UGRO grow its business mix by about 30% and add approximately Rs 150 crore of incremental profit on an annualised basis. Profectus is a Mumbai-based MSME and school financing non-bank lender.'This strategically priced acquisition deploys our equity raise to achieve instant scale and Rs 115 crores cost savings and annualized incremental profitability of Rs 150 crores thus boosting ROA by 0.6–0.7%," UGRO founder cum managing director Shachindra Nath said it would make the payment towards the all-cash deal in one go using the proceeds from its recently concluded Rs 400-crore rights issue. The company may go for a preferential issuance of compulsorily convertible debentures for the balance had Rs 12000 crore assets under management while Profectus had Rs 3500 crore at the end of March. Profectus, with its fully secured loan portfolio, will become a wholly-owned subsidiary of company has executed a share purchase agreement with the existing shareholders of Profectus Capital to acquire 100% of the shares of the latter. The acquisition is subject to regulatory and other standard approvals.
