New Delhi, July 13 -- Tata Capital will enter the gold loan business through the acquisition of an 88.6 per cent stake in Yogakshemam Loans Ltd (Yogloans), marking the Tata Group financial services company's entry into a secured lending segment with significant growth potential, according to a stock exchange filing.

The Board of Tata Capital approved the execution of a Securities Subscription and Purchase Agreement (SSPA) under which the company will acquire the majority stake in Yogloans through a combination of purchasing 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.

Explaining the rationale for the acquisit...