Ugro Capital Limited has informed the Exchange about Amalgamation/Merger
UGROCAP · price
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Awaiting price reaction for this filing.
Ugro Capital's board, on 8 January 2026, approved the merger of its wholly owned subsidiary Profectus Capital Private Limited (PCPL) into itself under Sections 230-232 of the Companies Act, 2013. PCPL is an MSME-focused NBFC with total assets of about ₹3,324 crore and revenue from operations of ₹216 crore in H1FY26. Since PCPL is fully owned by Ugro Capital, no new shares will be issued and there will be no change in the shareholding pattern of the listed entity once the merger is effective. The scheme is subject to approvals from NCLT, SEBI, RBI, stock exchanges, shareholders and creditors. Separately, the board also raised the company's commercial paper borrowing limit from ₹500 crore to ₹800 crore, indicating growth plans.
For shareholders, this is a structural simplification with no dilution or cash outflow, aimed at combining MSME lending operations for better scale, lower compliance costs and operational synergies. The increased CP borrowing limit suggests the company is preparing to fund growth post-merger, which could be mildly positive, though the merger is still subject to multiple regulatory approvals and may take time to conclude.