Abu Dhabi’s IHC to Acquire 43.5 Percent Stake in Sammaan Capital for Rs 8,850 Crore

 

Sammaan Capital Limited, formerly known as Indiabulls Housing Finance, announced that a unit of Abu Dhabi’s International Holding Company (IHC) will invest nearly $1 billion, equivalent to Rs 8,850 crore, to acquire a 43.46 percent stake in the non-banking financial company (NBFC).

 

The board of Sammaan Capital approved a preferential allotment of 330 million equity shares and 307 million convertible warrants to Avenir Investment RSC Ltd, an IHC unit. This investment allows IHC to assume promoter status with a 43.46 percent holding. As per Securities and Exchange Board of India regulations, the deal also triggers a mandatory open offer, giving minority shareholders an exit option due to the change in ownership.

 

This transaction marks IHC’s entry into India’s financial services sector and is considered the largest primary capital infusion by a single investor into an NBFC in the country, according to a joint statement from both companies.

 

The board cleared the issuance of 330 million equity shares at Rs 139 each, representing an 18 percent discount to Wednesday’s closing price of Rs 169.55, totaling approximately Rs 4,587 crore. Additionally, 307 million warrants, convertible into equity shares, were approved for around Rs 4,263 crore. The investment will be executed in tranches and is subject to shareholder and regulatory approvals, including from the Reserve Bank of India, SEBI, and the Competition Commission of India.

 

Once completed, IHC’s Avenir will hold up to 43.46 percent of Sammaan Capital and take on promoter responsibilities, including the right to nominate the majority of the board. The agreement also provides IHC with pre-emption and information rights. Sammaan Capital will hold an extraordinary general meeting on October 29 to seek shareholder approval for the preferential issue and amendments to its Articles of Association.

 

Commenting on the investment, Syed Basar Shueb, CEO of IHC, said, “India is a core strategic market, and its long-term growth potential is compelling. This $1 billion investment reinforces our commitment to supporting Sammaan Capital in its next phase, including leveraging AI for enhanced lending and credit solutions, and contributing to India’s financial ecosystem.”