In the biggest capital infusion by an investor in a non-banking financial company in India, Abu-Dhabi based International Holding Company PJSC (IHC) through its affiliate Avenir Investment RSC, has entered into a definitive agreement to acquire 41.2% stake in Sammaan Capital (formerly Indiabulls Housing Finance) for Rs 8,850 crore, according to an exchange notification issued on Thursday.
The transaction marks the entry of IHC, one of the world’s largest investment firms with a market capitalisation $239.9 billion, into the financial services sector in India.
Deal Details: Valuation, open offer, and promoter status
Post-deal, IHC will be classified as promoter of the company and will have the right to appoint majority of the board of directors. The transaction is subject to regulatory and statutory approvals and customary closing conditions.
The investment will be done through a preferential allotment of equity shares and warrants at a price of Rs 139 per share, which will consequently trigger an open offer for the purchase of the additional 26% stake in the non-bank lender.
New era: Leveraging AI for affordable housing finance
“This $1 billion investment reaffirms our commitment to supporting Sammaan Capital in its next phase of development, including the adoption of AI to enhance lending and credit solutions, and to contributing meaningfully to India’s financial ecosystem,” Syed Basar Shueb, CEO of International Holding Company said.
Added Gagan Banga, MD & CEO of Sammaan Capital, “Under IHC’s parentage, we will continue to focus on providing affordable housing finance and mid-market mortgage solutions to our customers, leveraging IHC’s strong technology capabilities”
He said ‘we are confident that our experienced and dynamic leadership will propel the next phase of growth with renewed energy and purpose.’
On the basis of the open offer subscription, the stake of the investment firm would be between 41% to 63.4% on a fully diluted basis, the notification said. Sammaan Capital’s shares are largely held by the public at 67.7% stake and 24.5% held by foreign institutions.
Over the past 25 years, Sammaan Capital has extended home loans of over $19 billion and has extended $9.5 billion of mortgage-backed loans to over 1 lakh small businesses.
The company was co-founded by Sameer Gehlaut, and was renamed in 2024 to Sammaan Capital. Gehlaut quit as chairman of the company in 2022.
On Wednesday, the shares of Sammaan Capital closed 4.8% higher at Rs 168.55 on the NSE.