Intimation regarding 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 & ....
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Paul Merchants Finance Pvt Ltd (PMFPL), a wholly owned subsidiary of Paul Merchants Ltd, has received the Second Tranche Consideration of Rs. 77.49 crore from L&T Finance Limited as part of the slump sale of its Gold Loan Business Undertaking. Out of this, Rs. 1.21 crore has been held back by L&T Finance pending a legal/tax opinion on depreciation treatment, and Rs. 15 crore is being retained as a Retained Amount under the Business Transfer Agreement terms. The net amount actually received by PMFPL is Rs. 61.28 crore. This follows earlier intimations dated February 7, 2025 and June 9, 2025 regarding the same transaction.
This tranche brings in meaningful cash inflows for the subsidiary, strengthening its balance sheet and providing liquidity. Shareholders should note that the group is exiting its gold loan business, which may refocus future earnings on Paul Merchants' other segments (forex, insurance, travel money). The retention of Rs. 16+ crore pending clarifications introduces minor uncertainty on the final realization.