UGRO Capital to acquire Profectus Capital for ₹1,400 cr

UGRO Capital Limited, the DataTech NBFC focused on MSME lending, has acquired Profectus Capital Private Limited, for ₹1400 crore, company said on Tuesday.
This all-cash deal, with the consideration payable in a single tranche at closing, will make Profectus a wholly owned subsidiary.
Ugro signed a share-purchase agreement with existing investor - British private equity firm Actis, it said.
This acquisition would add approximately ₹150 crore of annualized profit to UGRO making it a capital adequacy accretive transaction, it said.
Profectus has demonstrated stable portfolio expansion, building its assets under management to ₹3,468 crore as of March 2025, with presence across seven states through a 28-branch network and over 800-member team, all while maintaining a gross NPA of 1.6% and Net NPA of 1.1%, it added.
Both entities will maintain current operations and strategy during integration.Shachindra Nath, Founder and Managing Director of UGRO Capital, said, 'This strategically priced acquisition deploys our equity raise to achieve instant scale and ₹115 Crores cost savings and annualized incremental profitability of ₹ 150 crore thus boosting ROA by 0.6–0.7%."K.V. Srinivasan, Executive Director & CEO, Profectus Capital, added, 'The coming together of the two organisations would be beneficial owing to the synergies and complementarity of the businesses, which should result in greater operational efficiency and profitability for the business."

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

First Post

2 hours ago

• First Post

Britain informed ahead of Iran strikes but not asked to provide Diego Garcia base

Britain was informed of the US military strikes on Iran ahead of time, but did not receive any US request for their shared Diego Garcia air base in the Indian Ocean to be used, senior minister Jonathan Reynolds said on Sunday. read more This handout satellite picture provided by Maxar Technologies and taken on June 22, 2025, shows Iran's Fordow Fuel Enrichment Plant (FFEP), northeast of the city of Qom, after US strikes on the site. Image- AFP Britain was given advance notice of the United States' military strikes on Iran but was not asked to allow the use of their jointly operated Diego Garcia base in the Indian Ocean, UK minister Jonathan Reynolds said on Sunday. US President Donald Trump announced that American forces had 'obliterated' Iran's primary nuclear facilities in overnight strikes, marking a significant escalation in Middle East tensions. Tehran has vowed to respond with all available means. STORY CONTINUES BELOW THIS AD Reynolds clarified that the UK did not participate in the strikes but had previously deployed military assets to the region. He emphasised that Britain would take 'all action necessary' to defend its key allies if threatened. Prime Minister Keir Starmer, he added, was in ongoing communication with Britain's international partners throughout Sunday. 'I know often because of British military assets, RAF Akrotiri (in Cyprus) or Diego Garcia, sometimes that request is made. And this was not a situation where that request was made,' Reynolds, the business and trade minister, told Sky News. Diego Garcia is a strategically important UK-U.S. military base located in the Chagos Islands. Reynolds said Britain knew about the strike in advance. 'I can't tell you exactly when we did know, but we were informed, as you might expect,' he said. Reynolds said that the government was in 'active conversations' about chartering aircraft to get people out of the region within 'hours, not days', pending the possible reopening of Israeli airspace. Britain's foreign ministry said it was preparing for a charter flight 'early next week', adding that British nationals and their dependants in Israel and the Israeli-occupied Palestinian territories who were interested should register their details. STORY CONTINUES BELOW THIS AD Trump's intervention – despite his past pledges to avoid another 'forever war' – threatens to dramatically widen the conflict, after Israel launched an unprecedented bombing campaign on Iran last week, with Tehran vowing to retaliate if Washington joined in. Iranian Foreign Minister Abbas Araghchi accused the United States of sabotaging diplomacy after talks with European powers. 'This week, we held talks with the E3/EU when the US decided to blow up that diplomacy,' he wrote on X. Aragchi later told reporters in Istanbul the United States and Israel had 'crossed a very big red line', asserting Iran would continue to defend itself 'by all means necessary'. However, Israeli Prime Minister Benjamin Netanyahu hailed the US strikes, saying Trump's decision to 'target Iran's nuclear facilities with the awesome and righteous might of the United States will change history'. In response to the US attack, Iran's armed forces said they targeted multiple sites in Israel including Ben Gurion airport, the country's main international gateway near Tel Aviv. STORY CONTINUES BELOW THIS AD With inputs from agencies

Mint

5 hours ago

• Mint

UK Says It's Not Involved in US Strikes on Iran, Urges Talks

The UK and its military assets weren't involved in US strikes on Iran's main nuclear sites and is calling for a diplomatic solution to the crisis. While Britain wasn't directly involved, Prime Minister Keir Starmer on Sunday offered tacit backing to President Donald Trump's action, saying Iran's nuclear program is a 'a grave threat to international security.' 'Iran can never be allowed to develop a nuclear weapon and the US has taken action to alleviate that threat,' the premier said in a statement emailed by his office. 'The situation in the Middle East remains volatile and stability in the region is a priority. We call on Iran to return to the negotiating table and reach a diplomatic solution to end this crisis,' he added. Speaking for the government on Sky News, Business Secretary Jonathan Reynolds said the US didn't request British assistance in the attack, nor use of its base at Diego Garcia in the Indian Ocean. The potential use of that base by the US in strikes on Iran had raised concerns within the UK government about whether it complies with international law. The US did inform the UK in advance about the operation, Reynolds said. The US decision to proceed with military action demonstrates the failure of efforts by European nations to deescalate the conflict. Foreign ministers from the UK, France and Germany held talks with their Iranian counterpart on Friday but were unable to persuade Trump not to go ahead. 'The safety of UK personnel and bases is my top priority. Force protection is at its highest level and we deployed additional jets this week,' UK Defense Secretary John Healey said. Starmer will spend Sunday discussing the next steps with allies by phone, before he travels to The Hague this week for the North Atlantic Treaty Organization summit. 'Whilst the British government, the UK, has not been involved in these attacks, we have been making extensive preparations for all eventualities, including how we look after British nationals in the region and how we get them out, and the assets we have in the region to protect British infrastructure, British bases, British personnel if we need to do that,' Reynolds said. 'Iran cannot have a nuclear weapon, but we need a diplomatic process to turn this around,' he added. This article was generated from an automated news agency feed without modifications to text.

Mint

6 hours ago

• Mint

US Strikes Iran: The significance of Strait of Hormuz for global oil supply – explained in 5 points

US Strikes Iran: The US strike on three key nuclear facilities in Iran on Saturday night has put the spotlight back on the Strait of Hormuz – the strategically significant shipping pathway that carries about a fifth of the world's oil. Iran has long threatened to choke the Strait of Hormuz. In a fresh threat after the military strikes by its long-time foe, the United States, Hossein Shariatmadari, the Iranian Supreme Leader Ali Khamenei's representative, has reportedly called for immediate retaliation, including closing the Strait of Hormuz to American, British, German, and French ships. The Strait of Hormuz is a strait between the Persian Gulf and the Gulf of Oman. It provides the only sea passage from the Persian Gulf to the open ocean and is one of the world's most strategically important choke points. The Strait serves as the primary export route for Gulf producers such as Saudi Arabia, the United Arab Emirates, Iraq, and Kuwait. This pathway allows about 20 per cent of the world's daily oil consumption—around 20 million barrels—to pass through it. The strait has been at the heart of regional tensions for decades, and recently, attacks have occurred near it and targeted alternative routes for oil bypassing Hormuz, news agency Reuters said. Recently, President Trump blamed Iran for the June 12 attacks on two oil tankers at the entrance to the Gulf despite Tehran's denials, stoking fears of a confrontation in the vital oil shipping route. On July 19 Iran's Revolutionary Guards said they had captured a British-flagged oil tanker in the Gulf after Britain seized an Iranian vessel on July 4. At present, approximately 50 large oil tankers are attempting to navigate out of the Strait of Hormuz, according to the media reports. Iran's fresh threat after US strikes has raised concerns about how disruptive a conflict in the Gulf could be for the global oil trade. But what if Iran closes the Strait this time? How will it impact India? The Strait links the Persian Gulf to the Indian Ocean. Any blockade would drive the oil price up and cause inflation. Over two-thirds of India's oil imports and nearly half of its liquefied natural gas (LNG) imports transit through the Strait of Hormuz. Of the 5.5 million barrels of oil India consumes every day, 1.5 million pass through the waterway. 'If Iran closes the Strait of Hormuz, India will definitely suffer. About 20 per cent of the world's crude oil and 25 per cent of the world's natural gas flow through these,' Foreign Affairs Expert Robinder Sachdev told news agency ANI. India will suffer because oil prices will go up, inflation will rise, and there is an estimate that for every ten-dollar increase in the price of crude oil, india's GDP will suffer by 0.5 per cent, he said. Union Minister Hardeep Puri said earlier this week that India plans to source crude oil from outside the Persian Gulf and to cut its own refined‑product exports, as a potential blockage of the Strait of Hormuz looms. 'We have enough diversified supplies of crude, and even if there were to be a disruption, we can source it from alternative suppliers,' Puri, the Union Minister of Petroleum and Natural Gas, told NDTV 'I don't think this is something we are unduly worried about,' he added. Ample crude is available on the global market, so the concern is not supply but price, the Minister said. India is a net exporter of petroleum goods, with refiners such as Reliance Industries Ltd. and Nayara Energy shipping to countries such as the United Arab Emirates, Singapore, the US and Australia. The crisis could reduce those shipments if needed to maintain sufficient stockpiles at home. India's product exports have averaged 1.3 million barrels a day so far this year, with Reliance and Nayara dominating the industry with 82 per cent of shipments, Bloomberg reported. The strait has never been closed, despite apprehensions that its closure in the past would disrupt the global oil supply. Experts said that while there might be a temporary disruption in maritime traffic, Iran might refrain from choking the Strait of Hormuz, as it will pinch its friends more than its enemies. 'There are three significant reasons why Iran might not actually do so, even while signalling that it might do so rhetorically. First, it will hurt Iran's friend, China, the world's second-largest economy, and Iran's largest trading partner. China, is the number one importer of oil, accounting for nearly three-quarters of its oil export,' Shweta Singh is an associate professor, Department of International Relations, Faculty of International Studies, South Asian University, wrote in Mint recently. So China, will not like to see any disruption in its maritime oil shipments, and might actually use its economic leverage with Iran to prevent Iran from the closure of the narrow lane, she said 'Second, it will rupture Iran's relationship with Oman (which owns the southern half of the strait) and the Gulf Cooperation Council (GCC States). With Oman, careful crafting of a relationship has resulted in greater dependency for Iran on a wide range of issues,' Singh added. During the Iran–Iraq War in the 1980s, the two countries engaged in what is called the ' Tanker War'. Tehran targeted Kuwaiti and Saudi tankers, as Iraq retaliated with missile strikes. The US launched Operation Earnest Will to protect Kuwaiti oil tankers from Iranian attacks during the Iran-Iraq War. It was a key part of the larger 'Tanker War' and involved the largest maritime convoy operation since World War II. This oil war led to a hike in prices across the world, but still, the Strait remained open. 'Third, domestically this might not work for the interest of the regime, as any economic hits or closure of its oil exporting terminal, will see a surge in prices, and fuel popular discontent, which might impact both regime stability, and reformist tendencies for President Masoud Pezeshkian,' Singh wrote. Steven Schork, Schork Group principal and editor, told Bloomberg, that he does not think Iran will close the Strait of Hormuz because it would hurt India and China, two of their biggest oil export clients. If Iran closes the Strait of Hormuz, India will definitely suffer. About 20 percent of the world's crude oil and 25 percent of the world's natural gas flow through these. In 2011-2012, Iran again threatened to close the Strait in response to European and US sanctions against its oil exports and banking system. The then-Iranian Vice President Mohammad Reza Rahimi warned of a complete shutdown if oil sanctions were enforced. The Strait, however, was not closed. Likewise, in 2019, when the US withdrew from the Iran nuclear deal and tensions soared, apprehensions of closure gripped the globe yet again. But despite severe escalation, the Strait remained functional.