NBFC stock jumps 10% on block deals at premium
SYNOPSIS: Ugro Capital jumped nearly 10 percent after over 10 lakh shares were traded in premium block deals, driving volumes to 22 times the 30-day average, though the buyers and sellers remain undisclosed.
During Tuesday’s trading session, shares of a technology-focused (data-centric & technology-enabled approach) small business lending platform surged nearly 10 percent on the stock exchanges. What triggered this significant jump? Let’s explore the details in this article.
With a market cap of Rs. 2,163.4 crores, shares of Ugro Capital Limited closed in the green at Rs. 185.2 on BSE, up by around 7 percent, as against its previous closing price of Rs. 172.9.
The stock has delivered negative returns of more than 16 percent in one year, but has gained by nearly 5 percent in the last one month.
What’s the News:
Shares of Ugro Capital Limited surged nearly 10 percent on Monday, reaching an intraday high of Rs. 190.15 on the BSE today, following a large block deal. According to market sources, over 10 lakh equity shares were exchanged in two block deals at Rs. 181.84 and Rs. 182.47 per share – both executed at a premium to the previous closing price of Rs. 172.59. However, the identities of the buyers and sellers involved in these transactions have not yet been disclosed.
By 2:40 p.m. IST, total volumes had crossed 5.4 million shares, representing nearly 22 times the company’s 30-day average trading volume.
Financials & more:
Ugro Capital reported a significant growth in its revenue from operations, showing a year-on-year increase of around 34 percent from Rs. 330 crores in Q2 FY25 to Rs. 455 crores in Q2 FY26.
Likewise, its net profit increased during the same period from Rs. 36 crores to Rs. 43 crores, representing a rise of more than 19 percent YoY.
Over the past three years, the company has added ~Rs. 3,000 crore to its AUM annually. UGRO’s proposed acquisition of Profectus Capital is expected to contribute an additional Rs. 3,000 crore in AUM through inorganic expansion. In anticipation of this, the company has recalibrated its current-year disbursals to moderate liability needs, which is expected to help lower borrowing costs going forward.
This shift has been supported by tighter underwriting standards, a strategy that aligns well with the prevailing macroeconomic headwinds in the small-ticket MSME lending segment.
UGRO Capital Limited is a non-deposit-taking Non-Banking Financial Company (NBFC-ND) classified as NBFC-Middle Layer. The company is engaged in the business of lending and primarily deals in financing the MSME sector with a focus on healthcare, education, chemicals, food processing/FMCG, hospitality, electrical equipment & components, auto components, micro enterprises and light engineering.
Written by Shivani Singh
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