Ugro Capital Limited has informed the Exchange regarding Outcome of Board meeting held on June 17, 2025.
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Awaiting price reaction for this filing.
Ugro Capital's Board has approved acquiring 100% of Profectus Capital Private Limited, an RBI-registered NBFC, for a cash consideration of ₹1,398.60 Crores payable in a single tranche. Profectus has an asset base of ₹3,577.66 Crores and turnover of ₹419.98 Crores (FY25), with business lines spanning enterprise mortgage loans, school financing, machinery financing, and supply chain finance. The deal is expected to add 29% to Ugro's AUM, bring ₹2,000 Crores of medium-term potential in school financing, deliver ₹115 Crores in cost savings, and lift profitability by ₹150 Crores with a 0.6-0.7% boost to ROA post-merger. The acquisition is subject to RBI approval and is targeted to close in 2-3 months. To fund the purchase, the Board has withdrawn its earlier May 20 postal ballot and will hold another meeting on June 20 to approve a revised preferential issue of compulsory convertible debentures.
This is a sizeable, fully-cash acquisition that materially expands Ugro's loan book and product mix, but it will be funded through a preferential debenture issue which could dilute existing shareholders. Near-term stock reaction may depend on the funding structure details to be announced on June 20 and RBI clearance.