UGRO Capital completes Profectus Capital acquisition, boosts AUM by 29%

UGRO Capital Limited announced on December 8, 2025, the completion of its 100% acquisition of Profectus Capital Private Limited, making Profectus a wholly-owned subsidiary. This acquisition follows approvals from the Reserve Bank of India and a Share Purchase Agreement dated June 17, 2025. The integration is expected to boost UGRO Capital’s consolidated AUM by 29% to ₹15,471 crore, with an immediate annualized profit accretion of ₹150 crore.

The transaction is projected to generate an additional ₹115 crore in operating synergies, improving Return on Assets (ROA) by 60-70 basis points and accelerating the path to stronger long-term Return on Equity (ROE). This strategic move will also increase the secured asset mix to 75%, enhancing earnings stability and lowering credit-cost volatility. UGRO Capital plans to initiate the merger process of Profectus into the parent company, subject to Board and shareholder approvals, while both entities operate independently until then.

The acquisition also opens a new ₹2,000 crore medium-term opportunity in school financing, diversifying UGRO’s profit pools and positioning the company for stronger EPS growth, improved return ratios, and superior long-term value for shareholders. This reflects UGRO Capital’s commitment to strengthening its foundation for accelerated growth, defined by stronger returns and more efficient capital utilization.