Capital Trust Limited (CTL), a non-banking financial company (NBFC) with a 40-year track record in financial inclusion and MSME lending, has made two significant announcements that signal its growth strategy and expansion plans.

Rights Issue Approval

Capital Trust Limited has received in-principle approval from the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for a proposed rights issue of up to Rs. 25.00 crores. The company's Rights Issue Committee has approved the terms and Letter of Offer for the issuance.

Key details of the rights issue include:

Upon full subscription, the total outstanding equity shares of the company will increase from 1,70,09,702 to 3,40,19,404 shares.

Entry into Gold Loan Business

In a separate development, Capital Trust Limited has announced its entry into the gold loan business with the opening of its first dedicated branch in Aligarh, Uttar Pradesh. This move marks CTL's formal entry into secured lending, diversifying its portfolio and expanding its service offerings.

Yogen Khosla, Chairman & Managing Director of Capital Trust Limited, commented on the launch: "Gold is the most trusted household asset in India, and our gold loan product allows customers to unlock its value swiftly and securely. With the adoption of RBI's new Gold Loan Directions and our strong focus on technology and compliance, CTL is well positioned to scale this business responsibly while serving customer needs."

Key features of CTL's gold loan offering include:

• Compliance with RBI's Gold Loan Directions
• Up to 85% Loan-to-Value (LTV) on small-ticket loans up to Rs. 2.50 lakhs
• 20-minute disbursement and release process
• App-based platform with one-click top-ups within LTV limits
• Enhanced security measures including 24x7 surveillance

Vinod Raina, Chief Financial Officer of Capital Trust Limited, added: "Our gold loan offering combines customer convenience with strong risk management. Customers get instant liquidity at competitive interest rates, while CTL builds a more secured and resilient portfolio."

With over 300 branches across 10 states, Capital Trust Limited aims to leverage its existing network to scale its gold loan business, focusing on urban and semi-urban markets where demand for quick and reliable credit continues to grow.

These strategic moves by Capital Trust Limited - the rights issue and expansion into the gold loan segment - reflect the company's efforts to strengthen its financial position and diversify its product offerings in the competitive NBFC sector.

Capital Trust Limited has announced its entry into the gold loan market, marking a significant expansion of its financial services portfolio. The company, known for its focus on providing credit to micro and small enterprises, has now ventured into the secured lending space with this strategic move.

Launch of Gold Loan Business

Capital Trust has officially commenced its gold loan operations with the inauguration of its first dedicated gold loan branch in Aligarh, Uttar Pradesh. This expansion represents a pivotal shift in the company's business model, as it diversifies its offerings to include secured lending products.

Strategic Expansion

The introduction of gold loans is part of Capital Trust's broader strategy to:

• Gradually build a secured lending portfolio
• Focus on customers in urban and semi-urban areas
• Meet the growing demand for reliable and convenient credit options
• Strengthen its overall business model
• Balance its lending mix
• Enhance long-term growth prospects

Regulatory Compliance

In a move that underscores its commitment to regulatory adherence, Capital Trust has adopted the recently notified RBI Gold Loan Directions, 2025. This ensures that the company's gold loan product is fully compliant with the latest regulatory requirements from its inception, providing customers with a trustworthy and transparent borrowing option.

Management's Perspective

The Board and Management of Capital Trust believe that this diversification into secured lending will positively impact the company's growth trajectory. By entering the gold loan market, Capital Trust aims to capitalize on the increasing demand for credit in urban and semi-urban areas while maintaining a balanced approach to risk management.

Looking Ahead

As Capital Trust embarks on this new venture, the financial services industry will be watching closely to see how this established player in micro and small enterprise lending performs in the competitive gold loan sector. The success of this initiative could potentially pave the way for further expansions and innovations in the company's service offerings.

Investors and stakeholders will likely monitor the performance of this new business line and its impact on Capital Trust's overall financial health and market position in the coming quarters.