Tata Capital Ltd (TCL), the flagship financial services company of the Tata Group, has approved the acquisition of a majority stake in Kerala-based Yogakshemam Loans Ltd (Yogloans), marking its entry into India’s fast-growing gold loan segment.
The proposed all-cash transaction will see Tata Capital acquire approximately 88.6% of the issued and paid-up share capital of the RBI-registered non-banking financial company (NBFC) through a combination of fresh capital infusion and the purchase of shares from existing shareholders.
The deal is based on a pre-money equity valuation of Yogloans of up to ₹318 crore, subject to customary adjustments. As part of the transaction, Tata Capital will infuse around ₹93 crore of fresh capital to support Yogloans’ future growth.
Strategic expansion
The acquisition represents a significant step in Tata Capital’s strategy to build a diversified retail lending franchise by adding gold loans, a secured lending product that continues to witness strong demand across India.
Yogloans has established itself as a specialised gold loan player with Assets Under Management (AUM) of ₹708 crore as of March 31, 2026. The company serves nearly 32,000 customers through a network of 162 branches spread across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh.
Founded in 1991 and headquartered in Thrissur, Yogloans has built strong expertise in sourcing, underwriting and servicing gold loans over more than a decade.
Management to continue
The business will continue to be led by Unnikrishnan Idicharm Veetil, Promoter and Managing Director of Yogloans, ensuring continuity for customers, employees and business partners following the acquisition.
The transaction remains subject to regulatory approvals and customary closing conditions. Tata Capital said it intends to consolidate the business at an appropriate stage after obtaining the necessary approvals.
Executive comments
Tata Capital Ltd Managing Director & CEO Rajiv Sabharwal 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.”
He added that Tata Capital’s trusted brand, financial strength, technology platform and risk management capabilities, combined with Yogloans’ market expertise, would help accelerate growth and enhance customer experience.
Yogakshemam Loans Ltd Promoter & Managing Director Unnikrishnan Idicharm Veetil said the company had built its business by focusing on customer experience and prudent lending practices.
“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,” he said.