Tata Capital Ltd. is entering India’s gold loan business by acquiring Yogakshemam Loans Ltd., according to multiple reports. The company’s board approves an all-cash deal with a valuation cap of up to ₹318 crore. The transaction involves Tata Capital purchasing equity shares from existing investors and subscribing to new equity shares in Yogakshemam Loans, with consideration for new shares cited at about ₹93 crore. One report states Tata Capital will acquire about 88.6% of Yogakshemam’s issued and paid-up share capital, while another characterizes the move as obtaining a majority stake.
Yogakshemam Loans is a non-banking financial company focused on gold loans, operating through a branch network across southern states. Reports say it has 162 branches in Kerala, Karnataka, Tamil Nadu and Andhra Pradesh, providing access to an established platform, customer base and management team.
The acquisition is expected to be completed within about eight months from signing, subject to customary conditions, including approval from India’s Reserve Bank of India (RBI). The move is described as expanding and diversifying Tata Capital’s retail lending offerings as competition increases in the gold loan segment.
