NBFC announces merger – keep an eye on the stock

The Board of Directors of UGRO Capital Limited on Thursday, January 8, approved a scheme of merger of its wholly-owned subsidiary, Profectus Capital Private Limited (PCPL), with the company. This merger will be carried out under Sections 230-232 read with Section 52 of the Companies Act, 2013, and is subject to approval from the National Company Law Tribunal (NCLT) and other regulatory authorities, including the stock exchange, SEBI, RBI, shareholders, and creditors.

According to the company’s exchange filing, upon 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. The reason behind the merger, as stated in the company’s exchange filing, is to create a stronger combined entity with a higher proportion of secured assets to support its emerging market and embedded finance businesses.