UGRO Capital board approves scheme to merge subsidiary Profectus Capital

UGRO Capital Limited’s board of directors on Thursday, January 8, approved the scheme of amalgamation of its wholly-owned subsidiary, Profectus Capital Private Limited (PCPL), with the company.

The merger

will be conducted under sections 230-232 read with Section 52 of the Companies Act, 2013, and is subject to sanction by the National Company Law Tribunal (NCLT) and approvals from stock exchanges, SEBI, RBI, shareholders, creditors, and other regulatory authorities.

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On completion of the merger, the shares held by UGRO Capital in PCPL will be cancelled without any further consideration, effectively merging the transferor and transferee entities.

As per an exchange filling by company, the rationale behind the merger includes creating a stronger combined entity with a higher proportion of secured assets to boost emerging market and embedded finance businesses.

The consolidation is also expected to reduce management overlaps, lower legal and regulatory compliance costs, and improve organisational capability through pooled human capital.

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Shares of UGRO Capital Ltd closed at ₹166 today, down ₹0.61 or 0.37%.