Ugro Capital up 7% on proposal to acquire 100% stake in Profectus Capital

Ugro Capital share price climbed 7 per cent in trade on Wednesday after inking a share purchase agreement with Actis PC Investment (Mauritius), Actis PC (Mauritius) Limited, and Profectus Capital

Ugro Capital share price advanced 7 per cent in trade on Wednesday, June 18, 2025, logging an intraday high at ₹183.35 per share on BSE. The buying on the counter came after the company proposed acquisition of Profectus Capital Private Limited. 

 

At 9:39 AM, Urgo Capital shares were trading 2.74 per cent higher at ₹176 per share on the BSE. In comparison, the BSE Sensex was up 0.31 per cent at 81,836.66. The company's market capitalisation stood at ₹2,080.97 crore. Its 52-week high was at ₹294 per share and 52-week low was at ₹141.11 per share. 

Ugro Capital to acquire Profectus Capital 

On Tuesday, after market hours, the company informed that it has signed a share purchase agreement (SPA) with Actis PC Investment (Mauritius) Limited, Actis PC (Mauritius) Limited, and Profectus Capital Private Limited to acquire 100 per cent of Profectus Capital’s shares for ₹1,398.6 crore. The deal will be paid fully in cash in a single installment at closing. Profectus Capital is a Mumbai-based non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI).

 

Further, the proposed acquisition transaction is expected to be funded from the proceeds of the preferential issue of compulsory convertible debentures. The earlier object of the said preferential issue was as under: 

 

"The company shall utilize at least 75 per cent of the proceeds of the preferential issue towards augmenting the capital base of the company and resources for meeting funding requirements for business activities including onward lending and 25 per cent of the proceeds of the preferential issue towards general corporate purposes, within one year from the receipt of the funds," the filing read.  Catch Stock Market LIVE Updates

How will the acquisition help Ugro Capital?

According to the filing, the acquisition will enhance four core NBFC pillars: Immediate 29 per cent asset under management (AUM) growth diversifies the combined portfolio to accelerate high-yield Emerging Markets and Embedded Finance expansion, while adding School Financing with incremental ₹2,000 crores medium-term potential.

 

The company estimates significant geographic and product alignment in secured LAP, machinery finance, and supply chain finance which will drive operational efficiencies, generating ₹115 crore cost savings adding incremental profitability of ₹150 crore thus boosting return on asset (ROA) by 0.6-0.7 per cent once a post-acquisition merger is complete.