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L&T Finance enters into gold loan business
Feb-08-2025

L&T Finance (LTF) has entered into the gold loan business through the proposed acquisition of Paul Merchants Finance’s (PMFL) gold loan business undertaking. The gold loan franchise will be an addition to LTF’s portfolio of secured loan products. 

The proposed acquisition includes a fully operational network and security center for 24/7 remote monitoring of all gold loan branches, strategically located in less penetrated markets like Chandigarh, Punjab, Haryana, Delhi, Rajasthan, Gujarat, Madhya Pradesh, and Uttarakhand. It also brings approximately 700 employees and 130 branches. 

This is an all-cash deal with a lumpsum consideration of Rs 537 crore along with certain adjustments to be done till closing, on a slump sale basis. The agreement is subject to necessary approvals and the fulfilment of all conditions precedent to closing. The business transfer is expected to close by the second quarter of the financial year 2025-26. 

L&T Finance (formerly known as L&T Finance Holdings) is one of the leading Non-Banking Financial Companies in India, with a strong presence across the lending business catering to the diverse financing needs of served and underserved customers.


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