MUMBAI/THRISSUR: Tata Capital Ltd has agreed to acquire an 88.66 per cent stake in Thrissur-based non-banking finance company (NBFC) Yogakshemam Loans Ltd (Yogloans), marking the Tata Group company's entry into India's fast-growing gold loan business.
The acquisition, approved by Tata Capital's Board on Monday, will be executed through a combination of the purchase of shares from existing shareholders and a fresh equity infusion into Yogloans.
Upon completion of the transaction, the Thrissur-headquartered lender will become a subsidiary of Tata Capital, subject to regulatory approvals and customary closing conditions.
The transaction is based on a pre-money equity valuation of up to Rs318 crore, while Tata Capital will infuse around Rs93 crore as fresh capital to support Yogloans' future growth.
As of March 31, 2026, Yogloans had assets under management (AUM) of Rs708 crore, of which nearly 85 per cent comprised gold loans.
162 branches
The company operates 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh, serving around 32,000 customers. Its gold loan portfolio recorded a compound annual growth rate of about 25 per cent between FY22 and FY26.
Tata Capital said the acquisition would add a secured lending product with significant growth potential to its retail lending portfolio and strengthen its presence in southern India through Yogloans' established branch network.
The company currently offers more than 25 lending products across retail, SME and corporate segments.
"This transaction marks Tata Capital's entry into the gold loan business," Managing Director and CEO Rajiv Sabharwal said, adding that the combination of Yogloans' market expertise and Tata Capital's brand, capital strength, technology and risk management capabilities would help accelerate growth and enhance customer experience.
Access to stronger capital
Yogloans promoter and Managing Director Unnikrishnan Idicharm Veetil said joining the Tata Group would provide the company with access to stronger capital, technology and brand support, enabling it to expand on the foundation built over the past decade. He will continue to lead the business after the acquisition.
The acquisition also intensifies competition in the country's gold loan market, where Kerala-based lenders Muthoot Finance and Manappuram Finance are among the dominant players.
In its regulatory filing, Tata Capital said its board approved the execution of a securities subscription and purchase agreement (SSPA) with Yogakshemam Loans and the existing shareholders of the company.
