Shares of L&T Finance rose by more than 2% in opening trade on Monday after the non-banking financial company (NBFC) announced the completion of the acquisition of the gold loan business of Paul Merchants Finance Private Ltd (PMFL), a wholly owned subsidiary of Paul Merchants Ltd. The acquisition includes PMFL’s 130 branches, approximately 700 employees, and business transfer of its gold loan book size of ₹1,350 crore to LTF.

Buoyed by the news, L&T Finance shares surged as much as 1.8% to ₹193.30 on the BSE, while its market capitalisation climbed to ₹48,150 crore. The stock opened higher at ₹192.35 against Friday’s closing level of ₹189.85 apiece. On the other hand, Paul Merchants opened flat at ₹758 on the BSE, with a market capitalisation of ₹233.77 crore.

L&T Finance shares inched close to their 52-week high of ₹194.20 touched on July 4, 2024; the stock had slipped to its 52-week low of ₹129.15 on January 13, 2025. The counter has risen nearly 17% in a year and 40% in calendar year 2025. In the past month, the NBFC stock has gained more than 19%.

In an exchange filing this morning, the L&T Group company announced the completion of the acquisition of Paul Merchants Finance's gold loan business. Earlier in 2025, L&T Finance had announced the proposed acquisition of the gold loan business of PMFL, marking its entry into this segment. The gold loan franchise will be an addition to L&T Finance’s portfolio of secured loan products.

“We are pleased to announce the completion of PMFL’s gold loan business acquisition. In line with our five-pillar strategy of enhancing customer acquisition, we continuously endeavour to expand our existing product offerings in a synergistic and contiguous manner,” said Sudipta Roy, Managing Director & CEO of L&T Finance.

L&T Finance has one of the largest rural franchises of approximately 1.6 crore rural customers, and hence, this acquisition is a natural, contiguous cross-sell product extension of its business, said the company. “Our rural workforce of 20,000 feet-on-street will provide an immediate force multiplier, enabling active generation of gold loan leads within our existing customer base. This is a significant strength that sets us apart from the competition,” said Roy.

“The gold loans business will fill a crucial gap in our portfolio, introducing a secured, high-yield product that will benefit both our rural and urban customers. This acquisition is not just about expanding our offerings; it's about solidifying our position as a comprehensive financial partner for our customers across the country,” added Roy.