Russian pawnbroker MGKL to set up subsidiary in India

MOSCOW. July 15 (Interfax) - The board of directors of PJSC MGKL , the holding company of Russian pawnshop chain Mosgorlombard, has decided to set up a company in the GIFT City international financial center in the Indian state of Gujarat to enter the capital market, the company announced.

GIFT City is an international financial services center with a simplified regulatory environment, tax incentives and opportunities to work with capital in more flexible infrastructure than under standard Indian jurisdiction. After registering in GIFT City, the company is considering issuing public capital market instruments.

The next step will be to register a company in Indian jurisdiction to offer loans secured by gold in India. Initially, the group is considering installing automated terminals for contactless appraisal, purchase and sale of physical gold and silver, which would be a first for the Indian market, MGKL said.

"Considering the scale and maturity of the gold-backed loans market in India, we expect strong demand for contactless acceptance of gold items," MGKL CEO Alexei Lazutin said in the press release.

MGKL secured a long-term local currency credit rating of B- on the international scale, with a stable outlook, from Indian rating agency CareEdge Global in April.

MGKL Group has several lines of business, including the Mosgorlombard pawnshop chain, wholesale purchase and processing of precious metals under the Log-Zoloto NDS brand, and resale under the Resale-Market brand. PJSC carried out an initial public offering on the Moscow Exchange at the end of 2023.