Tata Capital has entered the gold loan business. The company will buy 88.6% stake in Yogakshemam Loans Limited. Through this acquisition, Tata Capital will expand its retail lending portfolio. The deal is subject to RBI approval.
New Delhi [भारत]July 13 (ANI): Tata Capital will enter the gold loan business through the acquisition of 88.6 per cent stake in Yogakshemam Loans Ltd (Yogloans). This marks an entry for the Tata group financial services company into a secured lending segment that has significant growth potential, according to a stock exchange filing.
The board of Tata Capital has approved to execute the Securities Subscription and Purchase Agreement (SSPA). Under this, the company will acquire majority stake in Yogaloans by buying shares from existing shareholders and subscribing to new equity shares. The transaction is subject to customary conditions including approval from the Reserve Bank of India.
purpose of acquisition
Explaining the reason behind the acquisition, Tata Capital said, “This acquisition is in line with the company’s strategy to expand and diversify its retail lending portfolio in India and provides access to an established gold loan platform with an existing branch network, customer franchise and experienced management team.”
According to the filing, Tata Capital will invest around Rs 93 crore in YogLoans through subscription of new equity shares, while the acquisition is based on a pre-money equity valuation of not more than Rs 318 crore. Upon completion of the acquisition, Yogloans will become a subsidiary of Tata Capital.
About Yogalons
YogLoans is an RBI-registered non-banking financial company primarily focused on gold loans. As of March 31, 2026, it had assets under management (AUM) of approximately Rs 708 crore and operated a network of 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh, serving approximately 32,000 gold loan customers.
‘Important step for strategy’
Commenting on the acquisition, Rajeev Sabharwal, Managing Director and CEO, Tata Capital, said, “This transaction marks Tata Capital’s entry into the gold loan business, adding a secured lending product with significant growth potential to our retail lending portfolio and supporting our strategy of building a diversified lending franchise.”
He further added, “We are confident that the combination of Tata Capital’s trusted brand, capital strength, technology and risk management capabilities with YogaLoans’ market expertise will drive growth and create a better experience for customers.”
The company said the proposed acquisition is expected to be completed within eight months from the execution of the agreement, subject to regulatory approvals and satisfaction of customary conditions. (ANI)
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