UGRO Capital Acquires Profectus Capital in Rs 1,400 Crore Deal to Expand MSME Loans
UGRO Capital Ltd plans to acquire Profectus Capital Pvt Ltd for Rs 1,400 crore to boost its MSME loan sector. This all-cash deal will make Profectus a wholly owned subsidiary, enhancing UGRO’s market presence and profitability by adding Rs 150 crore of annualised profit and achieving operational efficiencies.
- Country:
- India
UGRO Capital Ltd has announced an ambitious acquisition of Profectus Capital Pvt Ltd for a substantial Rs 1,400 crore, marking a significant move to expand its MSME loan business.
The non-banking financial company has entered into a Share Purchase Agreement to acquire 100% ownership of Profectus, which will become its wholly owned subsidiary. This transaction, an all-cash deal, will see UGRO deploying capital from an upcoming equity raise to build a stronger asset portfolio.
UGRO expects this merger to boost profitability, adding approximately Rs 150 crore to its annualised profit, while also achieving Rs 115 crore in cost savings. The acquisition is projected to improve UGRO's return on assets by 0.6-0.7% and strengthen its finances in emerging markets.
(With inputs from agencies.)
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