UGRO Capital.
CAM Advises UGRO Capital on Profectus Capital’s Acquisiton: Mumbai, India – June 30, 2025 – UGRO Capital, a prominent data-tech platform specializing in MSME (Micro, Small, and Medium Enterprises) lending, has announced a significant strategic move with its all-cash acquisition of Profectus Capital Pvt. Ltd. from the UK-based private equity firm Actis. The deal, valued at ₹1,400 crore, is poised to substantially bolster UGRO Capital’s position in the secured lending landscape, marking a pivotal moment in its growth trajectory.
Ratnadeep Roychowdhury, CAM.
The transaction saw leading Indian law firm Cyril Amarchand Mangaldas (CAM) advising Actis and Profectus Capital on the intricate legal aspects of the deal. The team representing Actis was spearheaded by Partner Ratnadeep Roychowdhury, with crucial support from Principal Associate Anirud Sudarsan R, and Associates Chandrendu Chattopadhyay and Shaunak Choudhury. Concurrently, the team advising Profectus Capital was led by Partner Anshu Choudhary, supported by Consultant Suraj Soni, Senior Associate Mahin Rai, and Associates Nisha Nahata, Pramit Pandey, and Jyotiranjan Mallick.
Upon completion, Profectus Capital will integrate as a wholly-owned subsidiary of UGRO Capital. This acquisition is projected to add a substantial ₹3,468 crore in Assets Under Management (AUM) to UGRO’s existing portfolio, propelling its total AUM to an impressive approximate ₹15,500 crore. UGRO Capital plans to finance the acquisition through a combination of its recent equity raise and forthcoming Compulsorily Convertible Debentures (CCD) issuances, demonstrating a robust financial strategy for expansion.
Anshu Choudhary, Cyrril Amarchand Mangaldas.
The acquisition is expected to be significantly earnings accretive for UGRO Capital. The company forecasts an annual profit increase of ₹150 crore and anticipates cost synergies amounting to ₹115 crore. These financial benefits are projected to enhance UGRO’s return on assets by an impressive 60-70 basis points, signaling strong profitability prospects post-acquisition.
Profectus Capital brings to UGRO a valuable network of 28 branches spread across seven Indian states, along with a high-quality loan book demonstrating robust performance with gross Non-Performing Assets (NPAs) at a healthy 1.6%. This integration is set to significantly strengthen UGRO’s presence in key secured lending segments, including Loan Against Property (LAP), machinery financing, supply-chain financing, and school financing.
The market has reacted positively to the announcement, with UGRO Capital’s stock surging by 7% immediately after the news broke. This uptick reflects strong investor confidence in the strategic fit of the deal and its anticipated positive impact on UGRO’s financial health and market positioning.
The acquisition remains subject to essential regulatory and shareholder approvals, including a crucial nod from the Reserve Bank of India (RBI). Both parties anticipate the transaction to officially close in the coming months, solidifying UGRO Capital’s enhanced role in the dynamic MSME lending sector.
