Tata Group’s financial services company Tata Capital Ltd (TCL) on Monday said that its board of directors has approved the proposed acquisition of Yogakshemam Loans Limited (Yogloans), marking the conglomerate’s entry into gold loan business.
The Kerala-based company, Yogloans, is an RBI-registered non-banking financial company (NBFC) primarily focused on gold loans.
TCL in a regulatory filing, said that the acquisition aligns with its strategy of building a diversified retail lending franchise and provides access to an established platform.
Yogloans operates through a network of 162 branches across Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh, with assets under management (AUM) of Rs 708 crore as of March 31, 2026. The company serves around 32,000 gold loan customers and has built strong capabilities in sourcing, underwriting and servicing over more than a decade in the gold loan business. The company is owned by Unnikrishnan Idicharm Veetil, who will continue to lead Yogloans, even after the acquisition.
Under the proposed all-cash transaction, Tata Capital will acquire a majority stake in Yogloans through a combination of capital infusion and share purchase from existing shareholders. The transaction is based on a pre-money equity valuation of Yogloans not exceeding Rs 318 crore, subject to customary adjustments, and includes a primary capital infusion of approximately Rs 93 crore to support the company's growth plans.
Upon completion of the transaction, Tata Capital will hold approximately 88.6% of the issued and paid-up share capital (on a fully diluted basis) of Yogloans.
Tata Capital intends to consolidate at an appropriate stage, subject to requisite approvals. The proposed transaction is subject to receipt of requisite regulatory approvals and satisfaction of customary closing conditions.
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. 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.”
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 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,” he added.
