Shardul Amarchand Mangaldas & Co. Advised Paul Merchants On Sale Of Gold Loan Business To L&T Finance Limited
Shardul Amarchand Mangaldas & Co. advised Paul Merchants Finance Limited and its promoters on the USD 61.3 million sale of its gold loan business to L&T Finance Limited. The transaction involved complex regulatory and commercial structuring, marking L&T Finance’s entry into the gold loan sector.;
Shardul Amarchand Mangaldas & Co. advised Paul Merchants on sale of gold loan business to L&T Finance Limited
Shardul Amarchand Mangaldas & Co. advised Paul Merchants Finance Limited (“transferor”), Paul Merchants Limited, Mr. Sat Paul Bansal, and Mr. Rajneesh Bansal (collectively, the Promoter Group) on the sale of its gold loan business to L&T Finance Limited (“transferee”) through a business transfer agreement valued at approximately USD 61.3 million. The agreement was signed on February 07, 2025.
The deal marks the transferee’s entry into the gold loan sector and the transferor’s exit from the same. As a business transfer between entities regulated by the RBI and SEBI, the transaction was carefully structured and the documents thoroughly negotiated to address regulatory and commercial aspects, including the transfer of customer loan accounts, branch transfers, consultation rights during the standstill period, mutual non-compete and non-solicit obligations, and indemnity responsibilities.
The Shardul Amarchand Mangaldas & Co. team was led by Zubin Mehta (Partner) and Mohit Bhatia (Partner), with assistance from Sneha Rao (Associate) and Siddharth Jasrotia (Associate).
The tax team was led by Gouri Puri (Partner) and Rajat Bose (Partner), supported by Rahul Yadav (Counsel) and Neeladri Chakrabarti (Consultant).
Naval Chopra (Partner) advised on strategic aspects of the transaction.
Advisory on securities and competition law was provided by Manita Doshi (Partner), Aman Sethi (Partner), Harjas Singh (Senior Associate), and Mouli Jain (Associate).
AZB & Partners advised L&T Finance Limited on Indian legal aspects of the transaction.
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