SNG & Partners and Khaitan & Co have counselled on Godrej Finance acquiring Kanakadurga Finance’s gold loan business for an undisclosed amount.
However, the transaction involved the transfer of a gold loan portfolio valued at around INR2.8 billion (USD29 million) with nearly 12,000 customers served through 54 operational branches across Andhra Pradesh state. The transaction also involves the transition of about 250 employees.
SNG partner and head of financial services Aditya Vikram Dua and associate partner Sagar Devgan led the transaction team, advising Kanakadurga and its promoters. Counsel Devyani Dhawan provided strategic inputs, while senior associate Eesha Govilla and associate Arjun Khanna also assisted.
The SNG team provided end-to-end legal counsel throughout the transaction, advising on the continuity of servicing the loan portfolio, the transition of the branch network and employees, and the transfer and custody of customer and collateral records.
The firm’s mandate also included advising on the migration of data, technology infrastructure and third-party arrangements, taking into account the regulatory requirements applicable to a Reserve Bank of India-regulated, customer-facing lending business.
Khaitan & Co advised Godrej Finance on the transaction.
The acquisition marks Godrej Finance’s entry into the gold loan business. Godrej Finance offers tailored financial solutions across India, including business loans, loans against property, and financing for professionals and commercial real estate.
Kanakadurga Finance focuses on financing pre-owned commercial vehicles in semi-urban and rural regions, and complements its lending portfolio with gold loan products.