Dhruva Capital's Strategic Merger with Vector Finance Expands Microfinance Reach

Dhruva Capital Services Ltd merges with Vector Finance in a strategic move to enter the microfinance sector. The 1:1 share swap will expand Dhruva's market presence. The merger awaits approvals and aims to benefit customers through reduced borrowing costs and access to more capital.

In a significant move within the financial sector, Dhruva Capital Services Ltd has announced its merger with Vector Finance, marking its proactive entry into the burgeoning microfinance business. The merger, effective through a 1:1 share swap ratio, reflects a strategic decision by Dhruva to expand its market share.

This merger, approved by the board, is subject to the necessary approvals from regulators, shareholders, and the National Company Law Tribunal. With Vector Finance operating in six states and managing assets worth Rs 390.23 crore as of March 31, 2025, the combined entity is poised to create a more inclusive financial institution.

Shreeram Bagla, Managing Director of Dhruva Capital, highlighted the opportunity to penetrate underdeveloped markets in the east and northeast regions. Meanwhile, Rahul Johri, chairman of Vector Finance, emphasized that the collaboration will reduce costs and broaden product offerings for customers.

(With inputs from agencies.)