Tata Capital of India acquires a non-banking lending institution to enter the gold loan business

Glonghui, July 13 — Tata Capital has reached an all-cash acquisition agreement to acquire approximately 88.6% equity stake in the non-bank financial institution Yogakshemam Loans, which mainly engages in gold loan business. The pre-transaction equity valuation does not exceed INR 3.18 billion (equivalent to USD 33.2 million). Tata Capital will acquire the existing shares from the current shareholders of the institution and subscribe for new shares with an investment of INR 930 million to support business expansion.Yogakshemam Loans manages assets totaling INR 7.08 billion and operates 162 outlets across Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh. The transaction is subject to approval by the Reserve Bank of India and is expected to be completed within eight months. Upon completion, Yogakshemam Loans will become a subsidiary of Tata Capital.