Mumbai, July 16 -- Tata Capital Ltd (TCL) has received board approval to acquire Yogakshemam Loans Limited (Yogloans), marking TCL's entry into the gold loan sector. The board approved the transaction on Monday and indicated the acquisition aligns with the group's strategy of building a diversified retail lending franchise. The all-cash proposal will add a secured lending capability to Tata Capital's retail lending operations.

Yogloans is a non-banking financial company (NBFC) headquartered in Kerala that operates 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh. The company reported assets under management of Rs 7.08 bn as of March 31, 2026 and serves around 32,000 gold loan customers. It has built strong capabilities in sourcing, underwriting and servicing over more than a decade in the gold loan business.

Under the proposed structure, Tata Capital will acquire the majority stake through a mix of primary capital infusion and share purchase from existing shareholders. The transaction is based on a pre-money equity valuation of Yogloans not exceeding Rs 3.18 bn, subject to customary adjustments, and includes a primary capital infusion of approximately Rs 930 mn to support growth plans. On completion, Tata Capital will hold approximately 88.6 per cent of the issued and paid up share capital on a fully diluted basis.

The proposed deal remains conditional on receipt of requisite regulatory approvals and satisfaction of customary closing conditions, and Tata Capital has indicated an intention to consolidate at an appropriate stage. Management expects to leverage Tata Capital's capital strength, technology and risk management frameworks to scale the platform and enhance operational efficiency across the branch network.

TCL leadership described the acquisition as an opportunity to combine Yogloans' market expertise with Tata Capital's brand to accelerate growth and improve customer experience. Yogloans' promoter and managing director will continue to lead the business and work closely with Tata Capital to build on the foundation created over the years and take the business to the next phase.

Published by HT Digital Content Services with permission from Construction World.