Mumbai: Tata Capital‘s board has approved the proposed acquisition of Thrissur-headquartered gold loan NBFC Yogakshemam Loans, marking its entry into the gold loan business as it expands its retail lending portfolio.
The all-cash deal is based on a pre-money equity valuation of up to Rs 318 crore, subject to customary adjustments. Tata Capital will acquire a majority stake through a combination of a fresh capital infusion and the purchase of shares from existing shareholders. It will infuse about Rs 93 crore as primary capital to support Yogakshemam Loans’ growth.
After the transaction, Tata Capital will own about 88.6% of Yogakshemam Loans on a fully diluted basis. The company plans to consolidate the business at a later stage, subject to regulatory approvals. The transaction is also subject to customary closing conditions.
Yogakshemam Loans operates 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh. It had assets under management of Rs 708 crore and around 32,000 gold loan customers as of March 31, 2026. Unnikrishnan Idicharm Veetil will continue to lead Yogakshemam Loans after the acquisition.
Gold loans are the fastest growing segment in finance. For NBFCs during the current fiscal, loans against gold jewellery contributed Rs 19,808 crore, or 23.4% of all incremental credit, followed by vehicle loans (Rs 13,840 crore), housing loans (Rs 13,413 crore) and consumer durables (Rs 9,991 crore).
Rajiv Sabharwal, MD and CEO of Tata Capital, said: “This deal adds a secured lending product with significant growth potential to our portfolio, supporting our strategy of building a diversified lending franchise.”
