Making its entry into the gold mortgage enterprise, L&T Finance has signed an settlement to amass the gold mortgage enterprise of Paul Retailers Finance on a droop sale foundation for ₹537 crore in an all-cash deal.
The proposed acquisition features a absolutely operational community and safety centre for round the clock distant monitoring of all gold mortgage branches, strategically situated in much less penetrated markets like Chandigarh, Punjab, Haryana, Delhi, Rajasthan, Gujarat, Madhya Pradesh, and Uttarakhand. It additionally has round 700 staff and 130 branches.
The gold mortgage franchise can be an addition to LTF’s portfolio of secured mortgage merchandise, the corporate stated.
The enterprise switch is predicted to shut by the second quarter of the monetary yr FY26. “The gold mortgage enterprise enterprise will fill the hole of a secured excessive yield product in our portfolio in each rural and concrete. This aligns with our Lakshya 2026 technique, which focuses on rising our buyer base. It accelerates our gold mortgage enterprise time-to-scale by 36 months, offering roughly ₹1,000 crore in belongings beneath administration and over 98,000 lively clients in an simply integrable enterprise profile,” stated Sudipta Roy, Managing Director & CEO of LTF.
The gold mortgage enterprise complemented its current portfolio and allowed it to capitalise on the numerous overlap with its present buyer base of Rural Group Mortgage and Micro Finance operations. “We’re assured that this can be a key driver of future profitability,” stated Roy.
