Majority Stake Buy Expands Retail Lender Into Rs 708 Crore Gold Loan Market

Tata Capital Limited (TCL) has approved the acquisition of approximately 88.6 per cent of the issued and paid-up share capital, on a fully diluted basis, of Yogakshemam Loans Limited (Yogloans), marking its entry into the gold loan business.

The acquisition, cleared by TCL’s board on July 13, 2026, will be executed through a Securities Subscription and Purchase Agreement and involves a combination of share purchases from existing shareholders and subscription to equity shares. The proposed all-cash transaction is based on a pre-money equity valuation of Yogloans not exceeding Rs 318 crore, subject to customary adjustments. It includes a primary capital infusion of approximately Rs 93 crore to fund the company’s growth plans.

Upon completion, Yogloans will become a subsidiary of Tata Capital. The transaction is subject to requisite regulatory approvals, including prior approval from the Reserve Bank of India, and customary closing conditions. Completion is expected within eight months from execution of the agreement.

Yogloans is an RBI-registered non-banking financial company focused on gold loans, a secured lending segment. As of March 31, 2026, the company reported assets under management (AUM) of approximately Rs 708 crore. It operates 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh, serving around 32,000 gold loan customers.

For FY 2025-26, Yogloans reported a turnover of Rs 140.39 crore and a profit after Tax of Rs 14.21 crore. The company reported a net worth of Rs 115 crore as of March 31, 2026, and has recorded a 25 per cent compound annual growth rate in gold loan AUM over FY22-26. It employs more than 990 on-roll staff and has built in-house capabilities in sourcing, underwriting and servicing over more than a decade in the gold loan business.

The acquisition aligns with Tata Capital’s strategy of expanding and diversifying its retail lending portfolio by adding a secured lending product. The deal provides Tata Capital access to an established gold loan platform with an existing branch network, customer franchise and management team. Following the acquisition, Mr. Unnikrishnan Idicharm Veetil will continue to lead Yogloans.

Commenting on the transaction, Mr. Rajiv Sabharwal, Managing Director & CEO, TCL, said: ‘This transaction marks Tata Capital's entry into the gold loan business, adding a secured lending product with significant growth potential to our retail lending portfolio and supporting our strategy of building a diversified lending franchise. Yogloans has built a strong business over more than a decade under the leadership of Mr. Unnikrishnan and his team. We believe the combination of Yogloans' market expertise with Tata Capital's trusted brand, capital strength, technology and risk management capabilities will accelerate growth and create an enhanced experience for customers.’

Welcoming the transaction, Mr. Unnikrishnan, Promoter & Managing Director, Yogloans, said: ‘Over the years, we have built our gold loan business by focusing on customer experience, maintaining prudent lending practices and strengthening our presence across the markets we serve. We are proud of what the organisation has achieved and grateful for the trust placed in us by all stakeholders.’

Speaking about the opportunities ahead, Mr. Unnikrishnan added: ‘We are delighted to be joining the Tata family, one of India's most respected and trusted business groups. Tata Capital's brand, financial strength and technology capabilities will help accelerate our growth. We look forward to working closely with the Tata Capital team as we build on the foundation created over the years and take the business to the next phase.’

Incorporated on February 13, 1991, Yogloans is categorised as a ‘Base Layer’ NBFC and has developed its gold loan business across southern India over more than a decade.