Indian Tata Capital acquires non-bank lending institutions, entering the gold loan business.

The announcement shows that Tata Capital has reached a full cash acquisition agreement, planning to acquire approximately 88.6% of the equity of non-bank financial institution Yogakshemam Loans, which specializes in gold loans. The pre-transaction equity valuation does not exceed 3.18 billion Indian Rupees. Tata Capital will acquire existing shares from the institution's current shareholders, and also subscribe for new shares worth 0.93 billion Rupees, for business expansion. Yogakshemam Loans manages assets worth 7.08 billion Rupees and has a total of 162 branches in Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh. The transaction is subject to approval from the Reserve Bank of India, and is expected to be completed within 8 months. After the transaction is completed, Yogakshemam Loans will become a subsidiary of Tata Capital.