Tata Capital forays into the gold loan market with acquisition of 88.6% stake in Yogloans

Tata Capital Ltd. on Monday, July 13, said it will enter the gold loan business via the acquisition of Yogloans. The stock is looking to recover from the lows of the morning in response to the announcement.

The company said its board of directors on Monday approved the proposed acquisition of Yogakshemam Loans Ltd. (Yogloans), an RBI-regisrered NBFC focused on gold loans.

The acquisition will mark Tata Capital’s entry in the gold loans business. Yogloans operates via a network of 162 branches across Karnataka, Kerala, Tamil Nadu and Andhra Pradesh. Its assets under management stood at ₹708 crore as on March 31, 2026.

Yogloans serves around 32,000 gold loan customers and has built strong capabilities in sourcing, underwriting and servicing over more than a decade in the gold loans business. The business is led by Unnikrishnan Idicharm Veetil and post the acquisition he will continue to lead Yogloans, ensuring continuing for customers, employees and business partners, the company said.

As per the proposed all-cash transaction, Tata Capital will acquire a majority stake in Yogloans via a combination of capital infusion and share purchase from existing shareholders.

The transaction is based on a pre-money equity valuation of Yogloans not exceeding ₹318 crore, subject to customary adjustments. It also includes a primary capital infusion of ₹93 crore to support the company’s growth plans.

Post the transaction, Tata Capital will hold approximately 88.6% of the issued and the paid-up share capital of Yogloans.

The company said it intends to consolidate at an appropriate stage, subject to requisite approvals.

“This transaction marks Tata Capital’s entry into the gold loan business, adding a secured lending product with significant growth potential to its retail lending portfolio and supporting our strategy of building a diversified lending franchise,” Rajiv Sabharwal, managing director and CEO of Tata Capital, said.

Shares of Tata Capital were trading 0.8% lower at ₹357.6 apiece. The stock has gained 5% in the past month. Shares of other gold financing companies like Manappuram and Muthoot Finance are down up to 2% on Monday.

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