Photo credit: ReutersMUMBAI: Tata Capital's board has approved the proposed acquisition of RBI-registered gold loan NBFC Yogakshemam Loans, marking its entry into the gold loan business as it expands its retail lending portfolio.The all-cash deal is based on a pre-money equity valuation of up to Rs 318 crore, subject to customary adjustments. Tata Capital will acquire a majority stake through a combination of a fresh capital infusion and the purchase of shares from existing shareholders. It will infuse about Rs 93 crore as primary capital to support Yogakshemam Loans' growth.After the transaction, Tata Capital will own about 88.6% of Yogakshemam Loans on a fully diluted basis. The company plans to consolidate the business at a later stage, subject to regulatory approvals. The transaction is also subject to customary closing conditions.Yogakshemam Loans operates 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh. It had assets under management of Rs 708 crore and around 32,000 gold loan customers as of March 31, 2026.Unnikrishnan Idicharm Veetil will continue to lead Yogakshemam Loans after the acquisition.Rajiv Sabharwal, managing director and CEO of Tata Capital, said: "This 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 and supporting our strategy of building a diversified lending franchise."He said: "We believe the combination of Yogloans' market expertise with Tata Capital's trusted brand, capital strength, technology and risk management capabilities will accelerate growth and create an enhanced experience for customers."Unnikrishnan said: "We are delighted to be joining the Tata family, one of India's most respected and trusted business groups. Tata Capital's brand, financial strength and technology capabilities will help accelerate our growth."