Tata Capital Acquires Non-Banking Lending Firm to Enter Gold Loan Market

Deep News07-13 12:20

Tata Capital has entered into an all-cash acquisition agreement to purchase approximately 88.6% of the equity in Yogakshemam Loans, a non-banking financial company specializing in gold loans.

The pre-money equity valuation for this transaction does not exceed INR 3.18 billion (approximately USD 33.2 million).

Tata Capital will acquire existing shares from the company's current shareholders and will also invest INR 930 million to subscribe to new shares, with the capital intended for business expansion.

Yogakshemam Loans has assets under management of INR 7.08 billion and operates a network of 162 branches across the states of Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh.

The transaction is subject to approval from the Reserve Bank of India and is expected to be completed within eight months.

Upon completion of the deal, Yogakshemam Loans will become a subsidiary of Tata Capital.

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