UGRO Capital to acquire Profectus Capital for ₹1,400 Crore

18 Jun 2025 , 11:42 AM

UGRO Capital announced that it is planning to pick up 100% stake in Profectus Capital for an all-cash deal worth ₹1,400 Crore. With this, the company plans to strengthen its position in the secured MSME lending activities. 

This transaction is subject to regulatory and shareholder approval and is expected to be completed within a period of two to three months.

The company informed that it plans to fund this deal via a mix of its recent capital raise and internal accruals. This acquisition will immediately expand its assets under management (AUM) by 29%. As per the company’s filing with the bourses,  it will also be adding Profectus’ ₹3,468 Crore loan book to its portfolio.

The combined entity will have a total AUM of ₹15,471 Crore. 

Profectus Capital marks its presence in 7 Indian states and operates 28 branches. 

The business is strategically emphasized on secured lending products such as supply chain finance, school financing, and loans against property. 

The company said that its non-performing assets (NPAs) stood at 1.6% as of March 2025, net NPAs came in at 1.1%. With this deal, the company  could grow rapidly while maintaining its profitability and asset quality.

Effective April 1, 2025, the company plans to merge Profectus in itself, after the acquisition. Both companies will operate separately until the integration process is concluded.

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