Godrej Finance acquires gold loan business of Kanakadurga Finance; Khaitan & Co, SNG & Partners advise

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.

Khaitan & Co advised Godrej Finance on this acquisition.

The core transaction team consisted of Shishir Vayttaden (Partner), Aditi Singhvi (Partner), Pragyansh Nigam (Senior Associate), Bhaskar Vishwajeet (Associate) and Avantika Singh (Associate). The following provided assistance:

ELB: Deepak Kumar (Partner) and Sukriti Shrivastava (Associate);

Direct Tax: Hiten Kotak (Executive Director), Jimmy Bhatt (Partner), Vishal Samnani (Principal Associate) and Naresh Khanna (Associate);

Mayank Jain (Partner); Pranay Sahay (Principal Associate); Mihir Gupte (Senior Associate);

Data Privacy: Supratim Chakraborty (Partner); Shramana Dwibedi (Principal Associate);

Intellectual Property: Nirupam Lodha (Partner); Shivangi Narang (Principal Associate); Rebecca Cardoso (Associate);

Banking and Finance: Manisha Shroff (Partner); Siddhant Shetty (Senior Associate); Shivansh Jain (Associate);

Competition: Anisha Chand (Partner); Siddharth Bagul (Principal Associate); Joshua George (Associate);

Earlier this month, Khaitan & Co had assisted Tata Capital on entering the gold loan business by acquiring YOG LOANS.

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.

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