A listed microfinance-focused lender is currently in discussions with two non-banking financial companies (NBFCs) operating in the micro loan against property (micro-LAP) segment to acquire a majority stake. The move is part of the lender’s strategy to pursue inorganic growth and strengthen its presence in secured lending, according to people familiar with the matter. The lender has recently entered the micro-LAP business as part of a broader effort to diversify its product portfolio and reduce its dependence on the unsecured microfinance lending segment. Industry observers note that pursuing an acquisition would allow the lender to build a stronger operational platform in the micro-LAP space more quickly than relying solely on organic expansion. According to a person close to the development, the lender is evaluating a majority stake acquisition primarily to gain technical and operational expertise. Lending against property requires specialized skills, including accurate property valuation, legal due diligence, and verification of property titles, which differ significantly from the processes used in unsecured microfinance lending. Acquiring an established player would help the lender onboard experienced teams and proven systems rather than building these capabilities from scratch. This potential acquisition aligns with a broader industry-wide diversification trend among non-banking financial companies—microfinance institutions (NBFC-MFIs). The shift follows a recent regulatory change by the central bank, which increased the permissible exposure of NBFC-MFIs to non-microfinance loans to 40% of their total portfolio. Previously, these institutions were required to maintain at least 85% of their assets in microfinance loans, limiting non-microfinance exposure to just 15%. The relaxed norms have encouraged lenders to explore secured products such as loans against property, individual business loans, and other retail credit offerings. As per the latest available data, the lender’s assets under management (AUM) are still heavily skewed toward microfinance loans, which form the bulk of the portfolio. Individual loans contribute a smaller portion, while the loan-against-property book remains at a nascent stage, indicating significant headroom for expansion in secured lending. The lender has articulated an aggressive growth roadmap, aiming to expand its total loan book to approximately Rs 14,000 crore by the end of the current financial year, followed by around 20% growth in the next financial year. Strengthening the secured lending portfolio through acquisitions could support more stable asset quality and reduce volatility associated with unsecured lending cycles. On the market front, the company’s shares ended the latest trading session around 1.5% lower, closing at Rs 187.85 on the stock exchange, even as the broader benchmark index posted a marginal gain of about 0.2%. The decline suggests cautious investor sentiment, possibly reflecting near-term uncertainties around acquisition execution and integration, despite the long-term strategic rationale.