UGRO Capital gets RBI approval for Rs 1,400 crore acquisition of Profectus Capital

UGRO Capital Limited (NSE: UGROCAP | BSE: 511742), a leading DataTech NBFC focused on lending to MSMEs, has received approval from the Reserve Bank of India (RBI) to acquire 100% shareholding in Profectus Capital Private Limited. The central bank granted the approval on September 17, 2025.

The acquisition, valued at ₹1,400 crore, is an all-cash deal and is partially backed by UGRO’s recent equity raise. The company expects to close the transaction by October 31, 2025, subject to customary closing conditions under the share purchase agreement. Once completed, Profectus Capital will become a subsidiary of UGRO Capital. The companies will then move ahead with a merger application, targeting April 1, 2025, as the effective date of integration.

With this move, UGRO Capital is set to add immediate scale, driving a 29% increase in assets under management (AUM). Post-merger, the combined entity will manage an AUM of more than ₹15,000 crore, catering to over two lakh MSMEs across India.

The acquisition will also strengthen UGRO’s secured asset portfolio while expanding into high-yield segments such as Emerging Markets and Embedded Finance. Profectus’ expertise unlocks incremental opportunities worth over ₹2,000 crore in school financing, along with strong synergies in secured loan against property (LAP), machinery finance, and supply chain finance.

According to UGRO, the integration is expected to generate annual cost savings of around ₹115 crore and add nearly ₹150 crore in incremental profit, boosting return on assets (ROA) by 0.6%–0.7%.

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