L&T Finance Limited — Important, 07-02-2025: Agreements

L&T Finance Limited is entering the gold loan business through the acquisition of Paul Merchants Finance Pvt. Ltd.'s gold loan business undertaking for a total cash consideration of ₹537 crore, with certain adjustments before closing. This strategically significant purchase will enhance LTF’s portfolio of secured retail products and provide access to a customer base of over 98,000, along with 700 employees and 130 branches across 11 states.

The acquisition aligns with LTF’s Lakshya 2026 strategy aimed at sustainable growth and expanding its market presence. It is expected to close by the second quarter of the financial year 2025-26, subject to necessary approvals. This transaction is seen as a timely addition that will bridge the gap for a high-yield secured product, mainly benefiting from LTF's existing rural customer base, thereby potentially driving future profitability without diluting earnings per share. The gold loan business is anticipated as a key driver of growth given its lucrative market in under-penetrated areas.