SNG & Partners advises Kanakadurga Finance on acquisition of its gold loan business by Godrej Finance

Godrej Finance Limited has acquired the gold loan business of Kanakadurga Finance Limited.

The business comprises a gold loan portfolio of approximately ₹280 crore in assets under management, serving nearly 12,000 customers across 54 operational branches in Andhra Pradesh, and approximately 250 employees.

SNG & Partners advised Kanakadurga Finance and its promoters on this transaction. The Firm provided end-to-end legal counsel on the transaction, advising on continuity of servicing for the active loan portfolio, transition of the branch network and employees, and the transfer and custody of customer and collateral records, including migration of data, technology and third-party arrangements, in the context of an RBI-regulated, customer-facing lending business.

The transaction was led by Aditya Vikram Dua (Partner and Head – Financial Services) and Sagar Devgan (Associate Partner), with the deal team benefitting from strategic inputs from Devyani Dhawan (Counsel). The team also comprised Eesha Govilla (Senior Associate) and Arjun Khanna (Associate).

This acquisition marks Godrej Finance's entry into the gold loan business and represents a strategic milestone for Kanakadurga Finance, enabling it to realise value from its gold loan portfolio while supporting continuity for its customers, employees and branch network across Andhra Pradesh.

Earlier this month, Tata Capital also entered the gold loan business by acquiring YOG LOANS.

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