Tata Group-Backed NBFC Acquires 88.6% Stake in Yogloans; Makes Strategic Entry into Gold Loan Business, Check Details

On Monday, Indian equity benchmarks traded marginally lower, with the benchmark Nifty 50 index declining to 24,204.65. Despite the broader market weakness, Tata-capital-ltd-210850">Tata Capital share price traded at Rs 361.50, up 0.25 per cent or Rs 0.90 during the session, after the company announced its entry into the gold loan business through the proposed acquisition of Yogakshemam Loans Limited.

Tata Capital To Acquire 88.6 Per Cent Stake In Yogloans

Tata Capital Limited announced that its Board of Directors approved the proposed acquisition of Yogakshemam Loans Limited, also known as Yogloans, an RBI-registered non-Banking financial company primarily focused on gold loans.

Under the proposed transaction, Tata Capital will acquire approximately 88.6 per cent of the issued and paid-up share capital of Yogloans on a fully diluted basis through a combination of purchase of equity shares from existing shareholders and subscription to fresh equity shares. Upon completion of the transaction, Yogloans will become a subsidiary of Tata Capital.

Rs 93 Crore Primary Capital Infusion

The proposed acquisition is an all-cash transaction and is based on a pre-money equity valuation of Yogloans not exceeding Rs 318 crore. Tata Capital will also make a primary capital infusion of approximately Rs 93 crore to support Yogloans' growth plans.

The acquisition is subject to prior approval from the Reserve Bank of India and is expected to be completed within eight months from the execution of the Securities Subscription and Purchase Agreement, subject to customary conditions and regulatory approvals.
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Tata Capital Enters Gold Loan Business

The acquisition marks Tata Capital's entry into the gold loan business, a secured lending segment with significant growth potential. The transaction aligns with the company's strategy of expanding and diversifying its retail lending portfolio and provides access to an established gold loan platform.

Yogloans operates through a network of 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh. As of March 31, 2026, the company had assets under management of approximately Rs 708 crore and served around 32,000 gold loan customers.

Further, Yogloans had a net worth of Rs 115 crore, more than 990 on-roll employees and recorded a 25 per cent CAGR in gold loan AUM between FY22 and FY26. Around 85 per cent of its AUM is linked to gold loans.

Yogloans Financial Performance

As per the audited financial statements for FY26, Yogloans generated turnover of Rs 140.39 crore and reported a profit after Tax of Rs 14.21 crore. The company had AUM of approximately Rs 708 crore as of March 31, 2026.

Yogloans has built capabilities in sourcing, underwriting and servicing customers over more than a decade in the gold loan business. Post-acquisition, industry veteran Unnikrishnan Idicharm Veetil will continue to lead the business.

Management Commentary

Commenting on the transaction, 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.

“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.”

What are your thoughts on Tata Capital's entry into the gold loan business and the acquisition of Yogloans? Share your views in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.