Non-banking finance company (NBFC) UGRO Capital Tuesday said it will acquire 100 per cent stake in Profectus Capital for ₹1,400 crore in an all-cash deal, according to a statement.

Post completion of the transaction, Profectus will become a wholly owned subsidiary of UGRO Capital. Last month, the Board of Directors of UGRO Capital had approved a capital raise of up to ₹1,315 crore, including via a rights issue of ₹400 crore and a preferential issue of Compulsorily Convertible Debentures (CCDs) of up to ₹915 crore.

Profectus’s asset under management stood at ₹3,468 crore as of March 2025, with presence across seven states through a 28-branch network and over 800-member team. Its gross NPA stood at 1.6 per cent and Net NPA at 1.1 per cent as on March end.

The acquisition is expected to close on fulfilment of conditions, including receipt of RBI and shareholder approvals.

Says Shachindra Nath, Founder and Managing Director of UGRO Capital, “This strategically priced acquisition deploys our equity raise to achieve instant scale and ₹115 crore cost savings and annualised incremental profitability of ₹ 150 Crores thus boosting ROA by 0.6–0.7 per cent. Integrating Profectus’ school finance expertise unlocks ₹2,000 crore growth potential and strengthens our secured asset mix – accelerating our journey to become India’s largest MSME lender through enhanced emerging markets and embedded finance capabilities.”

Published on June 17, 2025