Godrej Capital has completed the Godrej Finance gold loan acquisition of Kanakadurga Finance’s gold loan business through its subsidiary Godrej Finance Limited, marking the company’s first strategic acquisition. Khaitan & Co advised Godrej Finance Limited on the transaction, which marks Godrej’s entry into the gold loan business. SNG & Partners advised Kanakadurga Finance and its promoters.
Introduction
Godrej Capital, the financial services arm of the Godrej Industries Group, through its subsidiary Godrej Finance Limited, announced the acquisition of the gold loan business of Kanakadurga Finance Limited — marking the company’s first strategic acquisition and a milestone in its journey to build a financial services franchise in India.
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. Kanakadurga Finance focuses on financing pre-owned commercial vehicles in semi-urban and rural regions, and had complemented its lending portfolio with gold loan products.
Jayaprakash Narayana and Sriman Narayana, Joint MDs of Kanakadurga Finance Limited, noted that as the company focuses on its core vehicle finance business, it decided to transition the gold loan business to Godrej Finance Limited.
Legal Teams Involved
Khaitan & Co — Advised Godrej Finance Limited (Acquirer)
The Khaitan & Co core transaction team comprised:
- Shishir Vayttaden — Partner
- Aditi Singhvi — Partner
- Pragyansh Nigam — Senior Associate
- Bhaskar Vishwajeet — Associate
SNG & Partners — Advised Kanakadurga Finance Limited and Its Promoters (Seller)
SNG & Partners advised Kanakadurga Finance and its promoters on this transaction, providing end-to-end legal counsel 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
- Sagar Devgan — Associate Partner
- Devyani Dhawan — Counsel (strategic inputs)
- Eesha Govilla — Senior Associate
- Arjun Khanna — Associate
Significance and Impact
This acquisition represents Godrej Capital’s first strategic acquisition and is in line with the company’s ambition to build a ₹1 lakh crore AUM franchise while serving over a million customers by 2031.
The SNG & Partners team provided end-to-end legal counsel throughout the transaction — covering the continuity of servicing the loan portfolio, the transition of the branch network and employees, and the transfer and custody of customer and collateral records — as the acquisition marks Godrej Finance’s formal entry into the gold loan segment.
The deal is also noteworthy from a sectoral context. The gold loans segment has been witnessing very high growth in recent months, driven by rising gold prices and lenders’ comfort with the secured nature of the product — with outstanding loans against gold jewellery reaching ₹3.29 lakh crore at the end of May 2026, up 69.9 per cent year-on-year.
The transaction also demonstrates the growing sophistication of M&A mandates in India’s NBFC sector, with the SNG & Partners team having to navigate complex regulatory obligations particular to an RBI-regulated lending business — including data migration, custody of collateral records, and continuity of customer servicing across 54 live branches. For a broader view of law firm deal activity in India, see the Deal Meter.
Godrej Finance Limited has acquired the gold loan business of Kanakadurga Finance Limited, taking over a portfolio of approximately ₹280 crore in AUM, nearly 12,000 customers, and 54 branches across Andhra Pradesh. The transaction was supported by two distinct legal teams — Khaitan & Co on the acquirer’s side and SNG & Partners on the seller’s side — each handling the full complexity of a regulated, customer-facing asset transfer. The deal positions Godrej Capital firmly within India’s rapidly expanding gold loan market.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. It is based on the details provided and publicly available sources.
