Overview

• UGRO Capital has signed a share purchase agreement to buy SME lender Profectus Capital in a single-tranche all-cash deal worth Rs 1,400 crore
• The acquisition will be funded through a preferential issue of compulsory convertible debentures pending board approval at the June 20 meeting
• The transaction awaits customary RBI and shareholder approvals and is expected to close within two to three months
• UGRO projects the deal will add about Rs 150 crore to its annualised profit and lift combined assets under management by 29% to Rs 15,471 crore
• After completion, UGRO plans to merge Profectus effective April 1, 2025, to diversify its portfolio and accelerate growth in emerging markets and embedded finance