Tata Capital’s board has approved the acquisition of an 88.6 per cent stake in Thrissur-based non-banking financial company Yogakshemam Loans (Yogloans) for up to ₹318 crore, marking the company’s entry into the gold loan business. The deal, approved Monday, includes a primary capital infusion of around ₹93 crore to support Yogloans’ growth plans, subject to customary adjustments.
Yogloans operates a network of 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh, serving around 32,000 customers. The company reported assets under management of ₹708 crore as of March 31, along with a net worth of ₹115 crore. Its gold loan portfolio grew at a compound annual growth rate of 25 per cent between 2021-22 and 2025-26.
Yogloans is promoted by Unnikrishnan Idicharam Veetil, a former deputy chief executive officer of Manappuram Finance who currently serves as the company’s managing director. He will continue to lead Yogloans after the transaction closes, Tata Capital said, adding that the arrangement is meant to ensure continuity for customers, employees and business partners.
Tata Capital, an upper-layer NBFC with a net AUM of ₹2.77 trillion as of March 31, said Yogloans will become its subsidiary once the transaction is completed and will be consolidated into its accounts at an appropriate stage. The company’s existing loan book is split between retail loans at 58.3 per cent, small and medium enterprise loans at 27.4 per cent, and corporate loans at 14.3 per cent.
Rajiv Sabharwal, managing director and chief executive officer of Tata Capital, said the transaction adds a secured lending product with significant growth potential to the company’s retail portfolio and supports its strategy of building a diversified lending franchise.
Brokerage IIFL Capital estimated that Yogloans’ loan book could generate a return on assets of around 5 per cent, compared with Tata Capital’s projected overall return on assets of about 2.2 per cent in 2027-28, and said the acquisition gives Tata Capital access to an experienced management team. Reserve Bank of India data shows NBFCs’ gold loan portfolios grew 69 per cent year-on-year to ₹3.3 trillion as of the end of May.