Khaitan & Co has advised Godrej Finance Limited (GFL) on its acquisition of the gold loan business of Kanakadurga Finance Limited, marking a strategic entry by Godrej into India's growing gold loan market.
The acquisition enables Godrej Finance to strengthen its consumer finance portfolio through access to an established gold loan business with approximately ₹280 crore in assets under management (AUM), nearly 12,000 customers, 54 operational branches across Andhra Pradesh, and a workforce of around 250 employees.
The transaction forms part of Godrej Capital's broader growth strategy and is expected to enhance its presence in secured retail lending. Industry observers view the move as a significant step in the ongoing expansion and consolidation of India's gold loan sector.
Khaitan & Co acted as legal counsel to Godrej Finance on the transaction. The deal team was led by Partners Shishir Vayttaden and Aditi Singhvi, supported by Pragyansh Nigam, Bhaskar Vishwajeet, Avantika Singh, and specialists from employment, tax, data privacy, intellectual property, banking, finance, and competition law practices.
The acquisition is expected to provide Godrej Finance with immediate operational capabilities, regional market access, and an experienced workforce in the gold lending segment. The transaction also aligns with Godrej Capital's long-term objective of diversifying its retail lending portfolio and expanding its footprint in southern India.
The deal highlights the increasing attractiveness of gold-backed lending in India, where financial institutions are seeking growth opportunities through acquisitions and strategic market expansion.