Tata Capital has agreed to acquire an 88.6% stake in Yogakshemam Loans Limited for an aggregate consideration of approximately ₹93 crore, marking its strategic entry into the gold loans market. The acquisition, approved by the Board on July 13, 2026, will be executed through a Securities Subscription and Purchase Agreement (SSPA) involving the purchase of equity shares from existing sellers and a subscription to fresh equity shares. This move allows Tata Capital to diversify its retail lending portfolio by leveraging an established gold loan platform with a proven operational track record.

Transaction Details

The transaction is structured as an all-cash deal, subject to a pre-money equity valuation of the target not exceeding ₹318 crore. Upon completion, Yogakshemam Loans Limited will become a subsidiary of Tata Capital. The acquisition is contingent upon satisfaction of customary conditions, including receipt of prior approval from the Reserve Bank of India. The company expects the transaction to be completed within eight months from the execution of the SSPA.

Strategic Rationale

The acquisition aligns with Tata Capital's strategy of expanding and diversifying its retail lending portfolio in India. By entering the secured lending segment, the company gains access to a product characterized by strong growth potential and attractive risk-adjusted returns. The target entity provides an immediate operating platform with a branch network across Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh, eliminating the need to build capabilities from scratch.

Financial Overview of Target

Yogakshemam Loans Limited is an unlisted non-banking financial company primarily engaged in the gold loan business. For the financial year 2025-26, the entity reported a turnover of ₹14,038.53 Lakhs and a profit after tax of ₹1,421.20 Lakhs. As of March 31, 2026, it held assets under management of approximately ₹708 crore.

The target operates as a 'Base Layer' NBFC and is led by an experienced management team, including Mr. Unnikrishnan Idicharm Veetil, who will continue to lead the business post-acquisition to ensure operational continuity.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE976I01016/1791d648-50cd-4f24-a071-5abe2069b090.pdf

Tata Capital has allotted Secured Redeemable Non-Convertible Debentures (NCDs) amounting to Rs 2750 crore on a private placement basis. The allotment was finalized on July 07, 2026, under the series 'TCL Secured NCD "D" FY 2026-27-VIS-M'. The issuance is backed by a pari-passu charge on the company's moveable property, including receivables and book debts, providing security cover equivalent to 1.00 time the aggregate outstanding value of the debentures.

The NCDs carry a coupon rate of 7.88% per annum and an XIRR of 7.8613% per annum. Interest payments are scheduled for July 07, 2027, July 07, 2028, July 07, 2029, July 08, 2030, and July 07, 2031. The instruments have a tenor of 1826 days from the deemed date of allotment, with a maturity date set for July 07, 2031. Redemption will be made via bullet payment at face value of Rs 1,00,000 per NCD.

Key Details of the Allotment

Security and Ratings

The debentures are secured by a charge on the company's receivables and book debts arising from loans and investments. In the event of a default in interest or principal repayment, the company will pay additional interest at 2% per annum over the coupon rate for the defaulting period.

The credit ratings assigned to the issue are CRISIL AAA/Stable by CRISIL Ratings Limited and ICRA AAA/Stable by ICRA Limited. The securities are proposed to be listed on the National Stock Exchange of India Limited (NSE).