New Delhi, July 13 -- 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 ...