Tata Capital to acquire 88.6% stake in Yogakshemam Loans

In each transaction, the acquisition cost for the seller is capped by a pre‑money equity valuation of the target not exceeding ₹318 crore. | Photo Credit:
REUTERS/FRANCIS MASCARENHAS

Tata Capital Limited announced on Monday that it will purchase roughly 88.6 % of the fully diluted issued and paid‑up share capital of Yogakshemam Loans Ltd, a Thrissur‑based firm, thereby gaining entry to an established gold‑loan business complete with a branch network, customer base and seasoned management.

As an upper‑tier NBFC, Tata Capital will subscribe to the equity of the unlisted, base‑tier NBFC for a total consideration of about ₹93 crore. By the end of March 2026, the target’s assets under management stood near ₹708 crore.

The amount Tata Capital will pay to the sellers—Unnikrishnan Idicharm Veetil, Sathyalakshmy M, Abhijith Unnikrishnan, Ramachandran Ottapathu, Jalajkumari Ramachandran, Vidya Sanooj and Sathianarayanan M—for their equity stakes will follow the Securities Subscription and Purchase Agreement (SSPA). It will be based, among other factors, on the target’s net worth as of 30 September 2026, according to TCL’s regulatory disclosure.

For each seller, the acquisition cost is limited by a pre‑money equity valuation of the target that must not exceed ₹318 crore.

By 31 March 2026, Yogakshemam Loans Ltd—incorporated in February 1991—ran a network of 162 branches spread over Kerala, Karnataka, Tamil Nadu and Andhra Pradesh.

According to the audited FY 2025‑26 financial statements, the target posted a turnover of ₹140.38 crore and a profit after tax of ₹14.21 crore.

Rajiv Sabharwal, Managing Director & CEO of Tata Capital, remarked: “This deal signals Tata Capital’s entrance into the gold‑loan sector, introducing a secured lending product with strong growth prospects to our retail lending lineup and reinforcing our aim to create a diversified lending franchise.

“Yogloans has cultivated a solid business for over ten years under the guidance of Unnikrishnan and his team. We are confident that merging Yogloans’ market know‑how with Tata Capital’s reputable brand, financial strength, technological edge and risk‑management expertise will spur growth and deliver an improved customer experience.”

It is worth noting that in June 2025, L&T Finance Ltd. (LTF) announced the completion of transferring the gold‑loan operations of Paul Merchants Finance Private Ltd. (PMFL)—a wholly owned subsidiary of Paul Merchants Ltd.—to LTF. The deal encompassed PMFL’s 130 branches, roughly 700 employees, and the transfer of its gold‑loan portfolio valued at ₹1,350 crore.

Sudipta Roy, Managing Director & CEO of LTF, stated: “LTF serves about 1.6 crore rural customers, making this acquisition a logical extension of our existing rural franchise.

“Our 20,000‑strong field team will act as an immediate force multiplier, generating gold‑loan leads from our current customer base…The gold‑loan business will address a key gap in our portfolio by offering a secured, high‑yield product that benefits both rural and urban clients.”

Published on July 13, 2026