Dhruva Capital Services Limited has announced a strategic merger with Vector Finance Private Limited, marking its entry into the microfinance business. The board of directors approved the merger on September 18, 2025, subject to necessary approvals from the National Company Law Tribunal, shareholders, and creditors of both companies.

Merger Details

The merger aims to combine Dhruva Capital's financial sector expertise with Vector Finance's strong presence in the microfinance industry. Vector Finance, with an Assets Under Management (AUM) of Rs 390.23 crore as of March 31, 2025, operates across six states, primarily in eastern and northeastern India. The company has a network of over 173 branches spanning 79 districts.

Financial Highlights

Strategic Benefits

Shreeram Bagla, Managing Director of Dhruva Capital Services Limited, stated, "The proposed merger of Vector Finance with Dhruva Capital marks a significant milestone in our growth journey. By joining forces, we wish to create a stronger and more resilient institution which combines our robust understanding of the financial sector with the deep and well-entrenched reach of the microfinance sector."

The merger is expected to:

• Expand Dhruva Capital's presence in underpenetrated markets
• Reduce overall borrowing costs
• Provide access to additional capital
• Potentially lower interest rates for customers
• Enhance the ability to serve customers across segments
• Expand product offerings

Industry Outlook

Rahul Johri, Chairman of Vector Finance and a veteran banker with over 34 years of experience, commented on the merger's potential impact: "This merger will offer perfect synergies to help create and develop a more diversified and resilient organisation by leveraging Dhruva Capital's understanding of the financial sector and backed by our strong deep roots level connect in the MFI sector."

The combined entity aims to drive inclusive growth by penetrating underserved markets and empowering communities with accessible and affordable financial services.

Current Operations

Dhruva Capital Services currently offers a range of financial products, including:

• Business loans
• Loans against property
• Commercial vehicle and equipment loans
• Invoice and lease rental discounting
• Construction finance

The strategic merger with Vector Finance is set to diversify Dhruva Capital's portfolio and strengthen its position in the growing microfinance sector.

Dhruva Capital Services Limited , a listed company providing stock broking and financial services, has made significant announcements that could reshape its future operations and leadership structure.

New Chief Financial Officer Appointed

The Board of Directors of Dhruva Capital Services Limited has appointed Mr. Shreeram Bagla as the company's Chief Financial Officer (CFO), effective September 12, 2025. This decision was based on the recommendation of the Nomination & Remuneration Committee.

Mr. Bagla, who already serves as a Whole Time Director of the company, brings valuable experience to his new role. He holds a bachelor's degree in commerce and has extensive knowledge in the food manufacturing and processing industries.

Merger with Vector Finance Private Limited

In a separate but equally significant development, the Board of Directors has approved a Scheme of Amalgamation and Arrangement between Vector Finance Private Limited ("Transferor Company") and Dhruva Capital Services Limited ("Transferee Company").

Key points of the merger include:

• Appointed Date: September 1, 2025
• Share Exchange Ratio: 1:1 (One fully paid-up equity share of Dhruva Capital for every one fully paid-up equity share of Vector Finance)
• Sweat Equity: Post-merger, Dhruva Capital will issue 17,50,000 sweat equity shares to Mr. Shreeram Bagla

The merger is subject to necessary statutory and regulatory approvals, including those from shareholders, creditors, and the National Company Law Tribunal.

Financial Snapshot

As of March 31, 2025, the financial positions of the companies involved in the merger were:

Rationale for the Merger

The amalgamation is expected to bring several benefits:

1. Formation of a larger entity with greater operational efficiency
2. Consolidation of businesses and pooling of resources
3. Economies of scale and reduction in common expenditures
4. Enhanced overall business efficiency and shareholder value
5. Direct ownership in a listed entity for Vector Finance shareholders

These strategic moves by Dhruva Capital Services Limited are aimed at strengthening its market position and creating a more robust financial services entity.