Latest news with #ProfectusCapital
Business Standard
12 hours ago
- Business
- Business Standard
UGRO Capital jumps on acquiring Profectus Capital
UGRO Capital added 3.15% to Rs 176.70 after the firm has informed that it will acquire 100% stake in Profectus Capital for Rs 1,400 crore in an all-cash deal, aiming to strengthen its position in the secured MSME lending segment. The transaction, subject to regulatory and shareholder approvals, is expected to close within the next two to three months. The acquisition of Profectus Capital is strategically aimed at enhancing UGRO Capitals four core NBFC pillars. It is expected to result in an immediate 29% growth in assets under management (AUM), significantly diversifying the combined loan book and accelerating expansion into high-yield Emerging Markets and Embedded Finance segments. The deal also marks UGROs entry into school financing, with an estimated medium-term potential of Rs 2,000 crore. According to the company, the acquisition offers strong geographic and product alignment, particularly in secured loan against property (LAP), machinery finance, and supply chain finance. This alignment is projected to drive operational efficiencies, with expected cost savings of Rs 115 crore and an incremental profitability boost of Rs 150 crore. Post-merger, UGRO anticipates a 0.6% to 0.7% increase in return on assets (ROA). The strengthened asset mix, with a higher share of secured assets, is expected to support the continued scaling of its Emerging Market and Embedded Finance verticals. The proposed acquisition is subject to approval from the Reserve Bank of India (RBI) concerning the change in control and management of Profectus Capital. The total consideration for the acquisition is Rs 1,398.60 crore, payable in cash in a single tranche upon closing. The acquisition will result in the purchase of 100% shareholding of Profectus Capital. The transaction does not qualify as a related party transaction. As for the issuance of shares, the consideration for the acquisition will be settled through a cash payment. Therefore, details regarding the issue price and class of shares issued are not applicable, as no shares are being issued in this transaction. UGRO Capital is a pioneering DataTech NBFC specializing in MSME and small business financing. By leveraging advanced data analytics and an extensive distribution network, it bridges the vast small business credit gap in India, delivering tailored credit solutions to micro, small, and medium enterprises (MSMEs) across the country. The company reported 24.04% jump in standalone net profit to Rs 40.55 crore in Q4 FY25 as against Rs 32.69 crore posted in Q4 FY24. Total income increased 24.83% YoY to Rs 412.44 crore in the quarter ended 31 March 2025.
Mint
12 hours ago
- Business
- Mint
UGRO Capital shares jump 7% on ₹1,400-crore all-cash acquisition of Profectus Capital
Shares of UGRO Capital surged over 7 percent in intraday trade on Wednesday, June 18, following the company's announcement of acquiring Mumbai-based NBFC Profectus Capital Private Limited in an all-cash deal worth ₹ 1,400 crore. The acquisition, subject to shareholder and regulatory approvals, is expected to be completed in the next two to three months. The deal will be financed through a combination of UGRO's recently concluded ₹ 400-crore rights issue and internal accruals. UGRO may also issue compulsorily convertible debentures to fund the balance. The company said the strategic acquisition will immediately expand its assets under management (AUM) by 29 percent, increasing the total consolidated AUM to approximately ₹ 15,471 crore. Profectus brings a ₹ 3,468 crore loan book to UGRO's portfolio. UGRO Capital announced that it will utilise the funds raised through its recent equity issuance to finance the acquisition of Profectus Capital. According to the company's statement, the capital will be directed toward building a fully secured asset base that offers immediate scale advantages without incurring origination costs. UGRO further stated that Profectus' secured lending operations are a strategic fit, aligning seamlessly with UGRO's data-centric underwriting model. '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. According to UGRO Founder and MD Shachindra Nath, 'This strategically priced acquisition deploys our equity raise to achieve instant scale, ₹ 115 crore in cost savings, and an annualised incremental profit of ₹ 150 crore—boosting our RoA by 0.6 to 0.7 percent.' The move is aimed at diversifying UGRO's lending base and deepening its footprint in high-yield areas like embedded finance and MSME lending. Profectus Capital primarily focuses on secured lending products such as school financing, loans against property, and supply chain finance. Operating through 28 branches across seven Indian states, the NBFC had gross NPAs of 1.6 percent and net NPAs of 1.1 percent as of March 2025. Once the acquisition is complete, Profectus will become a wholly owned subsidiary of UGRO Capital. The two companies are expected to merge effective April 1, 2025. UGRO's management expects the combined entity to gain from enhanced lender relationships, with access to Profectus' network of private and small finance banks. The acquisition is structured through a share purchase agreement, with UGRO acquiring 100 percent of Profectus Capital's shares from existing shareholders. InCred Capital served as the exclusive advisor to UGRO Capital, with legal and financial due diligence support provided by SNG & Partners and PwC, respectively. Avendus Capital advised Profectus Capital and its shareholders. Investors welcomed the acquisition news, sending UGRO Capital shares up 7 percent to an intraday high of ₹ 183.35 on the BSE. Despite the uptick, the stock still trades more than 37 percent below its 52-week high of ₹ 294, last touched in July 2024. The scrip had hit its 52-week low of ₹ 144.11 in March 2025. UGRO Capital has had a volatile performance over the past year. The stock has declined over 38 percent in the last 12 months. In June so far, it has slipped around 1 percent after gaining 1 percent in May and over 7 percent each in April and March. Prior to this rally, the stock had posted losses for five consecutive months between October 2024 and February 2025.
&w=3840&q=100)
Business Standard
14 hours ago
- Business
- Business Standard
Ugro Capital up 7% on proposal to acquire 100% stake in Profectus Capital
Ugro Capital share price advanced 7 per cent in trade on Wednesday, June 18, 2025, logging an intraday high at ₹183.35 per share on BSE. The buying on the counter came after the company proposed acquisition of Profectus Capital Private Limited. At 9:39 AM, Urgo Capital shares were trading 2.74 per cent higher at ₹176 per share on the BSE. In comparison, the BSE Sensex was up 0.31 per cent at 81,836.66. The company's market capitalisation stood at ₹2,080.97 crore. Its 52-week high was at ₹294 per share and 52-week low was at ₹141.11 per share. Ugro Capital to acquire Profectus Capital On Tuesday, after market hours, the company informed that it has signed a share purchase agreement (SPA) with Actis PC Investment (Mauritius) Limited, Actis PC (Mauritius) Limited, and Profectus Capital Private Limited to acquire 100 per cent of Profectus Capital's shares for ₹1,398.6 crore. The deal will be paid fully in cash in a single installment at closing. Profectus Capital is a Mumbai-based non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI). Further, the proposed acquisition transaction is expected to be funded from the proceeds of the preferential issue of compulsory convertible debentures. The earlier object of the said preferential issue was as under: "The company shall utilize at least 75 per cent of the proceeds of the preferential issue towards augmenting the capital base of the company and resources for meeting funding requirements for business activities including onward lending and 25 per cent of the proceeds of the preferential issue towards general corporate purposes, within one year from the receipt of the funds," the filing read. Catch Stock Market LIVE Updates How will the acquisition help Ugro Capital? According to the filing, the acquisition will enhance four core NBFC pillars: Immediate 29 per cent asset under management (AUM) growth diversifies the combined portfolio to accelerate high-yield Emerging Markets and Embedded Finance expansion, while adding School Financing with incremental ₹2,000 crores medium-term potential. The company estimates significant geographic and product alignment in secured LAP, machinery finance, and supply chain finance which will drive operational efficiencies, generating ₹115 crore cost savings adding incremental profitability of ₹150 crore thus boosting return on asset (ROA) by 0.6-0.7 per cent once a post-acquisition merger is complete.
Mint
15 hours ago
- Business
- Mint
UGRO Capital shares jump 7% on ₹1,400-crore all-cash acquisition of Profectus Capital
Shares of UGRO Capital surged over 7 percent in intraday trade on Wednesday, June 18, following the company's announcement of acquiring Mumbai-based NBFC Profectus Capital Private Limited in an all-cash deal worth ₹ 1,400 crore. The acquisition, subject to shareholder and regulatory approvals, is expected to be completed in the next two to three months. The deal will be financed through a combination of UGRO's recently concluded ₹ 400-crore rights issue and internal accruals. UGRO may also issue compulsorily convertible debentures to fund the balance. The company said the strategic acquisition will immediately expand its assets under management (AUM) by 29 percent, increasing the total consolidated AUM to approximately ₹ 15,471 crore. Profectus brings a ₹ 3,468 crore loan book to UGRO's portfolio. UGRO Capital announced that it will utilise the funds raised through its recent equity issuance to finance the acquisition of Profectus Capital. According to the company's statement, the capital will be directed toward building a fully secured asset base that offers immediate scale advantages without incurring origination costs. UGRO further stated that Profectus' secured lending operations are a strategic fit, aligning seamlessly with UGRO's data-centric underwriting model. '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. According to UGRO Founder and MD Shachindra Nath, 'This strategically priced acquisition deploys our equity raise to achieve instant scale, ₹ 115 crore in cost savings, and an annualised incremental profit of ₹ 150 crore—boosting our RoA by 0.6 to 0.7 percent.' The move is aimed at diversifying UGRO's lending base and deepening its footprint in high-yield areas like embedded finance and MSME lending. Profectus Capital primarily focuses on secured lending products such as school financing, loans against property, and supply chain finance. Operating through 28 branches across seven Indian states, the NBFC had gross NPAs of 1.6 percent and net NPAs of 1.1 percent as of March 2025. Once the acquisition is complete, Profectus will become a wholly owned subsidiary of UGRO Capital. The two companies are expected to merge effective April 1, 2025. UGRO's management expects the combined entity to gain from enhanced lender relationships, with access to Profectus' network of private and small finance banks. The acquisition is structured through a share purchase agreement, with UGRO acquiring 100 percent of Profectus Capital's shares from existing shareholders. InCred Capital served as the exclusive advisor to UGRO Capital, with legal and financial due diligence support provided by SNG & Partners and PwC, respectively. Avendus Capital advised Profectus Capital and its shareholders. Investors welcomed the acquisition news, sending UGRO Capital shares up 7 percent to an intraday high of ₹ 183.35 on the BSE. Despite the uptick, the stock still trades more than 37 percent below its 52-week high of ₹ 294, last touched in July 2024. The scrip had hit its 52-week low of ₹ 144.11 in March 2025. UGRO Capital has had a volatile performance over the past year. The stock has declined over 38 percent in the last 12 months. In June so far, it has slipped around 1 percent after gaining 1 percent in May and over 7 percent each in April and March. Prior to this rally, the stock had posted losses for five consecutive months between October 2024 and February 2025. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
19 hours ago
- Business
- Economic Times
Stocks in news: Hindustan Zinc, UGRO Capital, Delhivery, M&M, Vishal Mega Mart
PNB completed the sale of its entire stake (20.9% equity) in associate company, 'Mis India SME asset reconstruction company' for Rs 34 crore. Indian markets experienced a slight downturn, with several companies making headlines. Vedanta plans to sell shares in Hindustan Zinc, while UGRO Capital acquired Profectus Capital. Delhivery's acquisition of Ecom Express received CCI approval, and M&M also secured approval for the SML Isuzu acquisition. Polycab India secured a significant contract with BSNL for the BharatNet project. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Markets remained lackluster and ended nearly half a percent lower, continuing the ongoing consolidation phase. In today's trade, shares of UGRO Capital Vishal Mega Mart among others will be in focus due to various news Vedanta is expected to sell shares worth Rs 7,500 crore in Hindustan Zinc Ltd (HZL) through block deals, according to Capital, the DataTech NBFC focused on MSME lending, has acquired Profectus Capital, for Rs 1400 crore, company said on CCI approved Delhivery's proposed acquisition of a controlling stake in Ecom Express for about Rs 1,407 crore, marking a major consolidation move in India's logistics Capital reappointed Naveen Uppal as chief risk officer(CRO) of the company for three years with effect from June 17.M&M received unconditional Competition Commission Of India (CCI) approval for SML Isuzu acquisition and open offer. Polycab India has executed a contract worth Rs 6,447.54 crore with BSNL to act as the project implementation agency (PIA) for the BharatNet project in Karnataka, Goa, and Samayat Services LLP sold 19.6% equity in the company for about Rs 10,220 crore. Buyers include SBI Mutual Fund, Kotak Mahindra Mutual Fund and HDFC Mutual received letter of intent (LoI) from Zoram Electronics Development Corporation for a project worth Rs 43.99 completed the sale of its entire stake (20.9% equity) in associate company, 'Mis India SME asset reconstruction company' for Rs 34 Castings to shut down its MBF production facility at Khardah works unit and main plant for 10-12 days from June 18 for maintenance work.
