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.
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