Tata Capital Limited’s board of directors approved the execution of a Securities Subscription and Purchase Agreement (SSPA) to acquire approximately 88.6% of the issued and paid-up share capital of Yogakshemam Loans Limited (“Yogloans”), a Thrissur-based gold loan NBFC, the company said on Monday.
The all-cash deal, cleared at a board meeting that ran from 8:00 a.m. to 9:05 a.m., marks Tata Capital’s entry into the gold loan business and is expected to close within eight months, subject to approval from the Reserve Bank of India.
Tata Capital: Deal structure and valuation
Under the SSPA, signed between Tata Capital, Yogloans, and the target’s seven promoter-sellers led by Mr. Unnikrishnan Idicharm Veetil, the acquisition will proceed through a combination of share purchase from existing sellers and fresh subscription to equity shares.
Tata Capital will infuse approximately ₹93 crore into Yogloans as primary capital, with the overall transaction based on a pre-money equity valuation of the target not exceeding ₹318 crore. The purchase consideration for shares bought from sellers will be determined based on Yogloans’ net worth as of September 30, 2026.
Once completed, Yogloans will become a subsidiary of Tata Capital, which said it intends to consolidate the entity “at an appropriate stage,” subject to regulatory clearance.
Yogloans, incorporated in February 1991, is an RBI-registered, “Base Layer” NBFC that runs 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh, serving roughly 32,000 gold loan customers.
As of March 31, 2026, the company had assets under management of about ₹708 crore and a net worth of ₹115 crore, with gold loan AUM growing at a 25% CAGR between FY22 and FY26. For the year ended March 2026, Yogloans reported a turnover of ₹14,038.53 lakh and profit after tax of ₹1,421.20 lakh, up from ₹12,996.70 lakh in FY25 and ₹11,622.25 lakh in FY24.
Management stays on
Mr. Unnikrishnan, Yogloans’ promoter and managing director, will continue to lead the company after the acquisition.
Commenting on the deal, Tata Capital managing director and CEO Rajiv Sabharwal said the 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.”
Unnikrishnan, welcoming the deal, said he was delighted to be joining the Tata family, one of India’s most respected and trusted business groups.”
