Mumbai, July 14 -- Tata Capital is entering the gold loan business through the acquisition of a controlling stake in gold loan-focused non-banking financial company (NBFC) Yogakshemam Loans Ltd (Yogloans), the company said in a press release on Monday. The acquisition adds a secured lending product to the Tata Group firm's portfolio as it broadens its retail lending business. The board on Monday approved an all-cash transaction under which Tata Capital will acquire an 88.6% stake in Yogloans through a combination of a capital infusion and the purchase of shares from existing shareholders. The deal values Yogloans at a pre-money equity valuation of up to Rs.318 crore and includes a primary capital infusion of about Rs.93 crore to fund future growth. The acquisition is subject to regulatory approvals and customary closing conditions. Yogloans, headquartered in Thrissur, Kerala, has assets under management (AUM) of Rs.708 crore as of March, serves around 32,000 customers and operates 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh. The company has built its franchise over more than a decade in the gold loan business and will continue to be led by promoter and managing director Unnikrishnan Idicharm Veetil after the acquisition. "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," Rajiv Sabharwal, managing director and CEO of Tata Capital, said. "We believe the combination of Yogloans' market expertise with Tata Capital's trusted brand, capital strength, technology and risk management capabilities will accelerate growth and create an enhanced experience for customers," he said....