L&T Finance has made a big move by acquiring the gold loan business of Paul Merchants Finance Pvt Ltd (PMFL) for ₹537 crore. This marks the company’s entry into the gold loan market, adding another secured loan product to its portfolio. The deal is structured as a slump sale, meaning L&T Finance will take over the entire business for a lump sum payment, with some final adjustments before the transaction is completed. The deal still requires regulatory approvals and is expected to be finalized by the second quarter of FY 2025-26.
With this acquisition, L&T Finance will gain control of a well-established network of gold loan branches spread across key regions, including Chandigarh, Punjab, Haryana, Delhi, Rajasthan, Gujarat, Madhya Pradesh, and Uttarakhand. It will also take over a 24/7 security center that monitors all gold loan branches remotely. The deal brings in 130 branches, around 700 employees, and a customer base of over 98,000 active borrowers.
The acquired business has assets under management (AUM) of approximately ₹1,000 crore, providing L&T Finance with a strong base to scale up operations. This move will help the company expand its presence in both rural and urban markets, offering gold loans as a high-yield, secured lending option.
L&T Finance’s Managing Director and CEO, Sudipta Roy, highlighted that this acquisition is an important step toward long-term growth and better returns. He added that adding gold loans to the company’s portfolio will accelerate its expansion by nearly 3 years, allowing it to tap into a profitable and growing market segment.