UGRO Capital Secures RBI Nod for ₹1,400 Crore Profectus Capital Acquisition

On September 17, 2025, the RBI approved UGRO Capital’s proposal to acquire 100% equity in Profectus Capital Private Limited. The deal, valued at ₹1,400 crore, will be executed entirely in cash and is partly supported by UGRO’s recent equity raise. The transaction is expected to close by October 31, 2025, pending customary closing conditions outlined in the share purchase agreement.

Merger to Add Scale and Diversify Lending Segments

Post-acquisition, Profectus Capital will become a wholly-owned subsidiary of UGRO Capital. Both entities aim to complete the merger by April 1, 2026, enabling the unified firm to operate with a strengthened financial position. 

The acquisition will lead to a 29% jump in assets under management (AUM), pushing the combined AUM to over ₹15,000 crore and expanding UGRO’s reach to more than 2,00,000 MSMEs across India.

High-Growth Lending Avenues and Operational Synergies

This acquisition positions UGRO to deepen its presence in high-growth lending sectors such as Embedded Finance and Emerging Markets. Additionally, Profectus Capital brings significant lending experience in segments like school financing, machinery finance and LAP. 

The merger is expected to generate operational cost savings of nearly ₹115 crore annually and deliver ₹150 crore in incremental profits, resulting in a return on assets (ROA) improvement of 0.6% to 0.7%.

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Strategic Benefits for MSME Lending Landscape

With this acquisition, UGRO Capital will unlock lending potential worth over ₹2,000 crore in focused segments such as supply chain and educational finance. This step strongly aligns with the company's goal of being a DataTech-driven NBFC that powers MSME growth across India through diversified financial products and innovative delivery.

UGRO Capital Share Price Performance

On September 18, 2025, UGRO Capital share price opened at ₹173.40 on NSE, above the previous close of ₹171.70. During the day, it surged to ₹173.48 and dipped to ₹166.78. The stock is trading at ₹171.92 as of 3:28 PM. The stock registered a marginal change of 0.13%.

Over the past week, it has declined by 2.78%, over the past month, it has moved up by 2.29%, and over the past 3 months, it has moved up by 0.54%.

Conclusion

UGRO Capital’s ₹1,400 crore acquisition of Profectus Capital marks a significant expansion in its strategic path. With regulatory approvals secured and the integration plan set, UGRO is on course to scale operations, enhance profitability and further diversify its MSME lending portfolio.

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