Completion of Slump Sale of the ''Gold Loan Business Undertaking'' by Paul Merchants Finance Private Limited, a material wholly owned subsidiary of Paul Merchants Limited, to L & T Finance Limited
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Paul Merchants Finance Pvt Ltd (PMFPL), a wholly owned material subsidiary of Paul Merchants Ltd, has completed the slump sale of its entire Gold Loan Business to L&T Finance Ltd on June 9, 2025. The transaction includes all assets, liabilities, employees, contracts, rights, obligations and goodwill (excluding the brand name), transferred on a going concern basis. The lump sum purchase consideration, after the first tranche adjustment, stands at about ₹660.64 crore, of which ₹25 crore has been retained by L&T Finance as a Retained Amount to be released later. The remaining balance will be paid after the second tranche adjustment as per the Business Transfer Agreement.
This is a major cash inflow event for Paul Merchants via its subsidiary, with a significant chunk arriving later. The company has fully exited the gold loan business while retaining the brand name for potential future use. Shareholders should view this as a strategic divestiture that reshapes the group's business mix, with proceeds possibly being deployed toward other businesses or returned to shareholders.