Abu Dhabi-based International Holding Company (IHC) is set to make a significant investment of ₹8,850 crore (approximately $1 billion) in Sammaan Capital Ltd, a prominent Indian non-banking financial company (NBFC). This move marks IHC's entry into India's financial services sector and signifies its confidence in the country's long-term growth potential.
Deal Structure and Details
IHC, through its subsidiary Avenir Investment RSC Ltd, will acquire a 43.5% controlling stake in Sammaan Capital. The investment will be executed through a preferential allotment of 330 million equity shares and 300 million warrants, each priced at ₹139. This price represents a discount compared to the closing price of ₹168.55 on the NSE on Wednesday, prior to Thursday's market holiday.
The transaction will also trigger a mandatory open offer for an additional 26% stake in Sammaan Capital, in compliance with regulations set by the Securities and Exchange Board of India (SEBI). If the open offer is fully subscribed, IHC's stake in the mortgage lender could increase to as much as 63.4% on a fully diluted basis, including shares issued upon the exercise of warrants.
Following the completion of the deal, IHC will be classified as a promoter of Sammaan Capital and will have the right to appoint a majority of directors to the company's board, subject to regulatory approvals.
Sammaan Capital: A Key Player in India's Housing Finance Market
Sammaan Capital, formerly known as Indiabulls Housing Finance, is a major NBFC in India, focusing primarily on mortgage lending. The company is listed on both the Bombay Stock Exchange and the National Stock Exchange of India. It operates through a network of 220 branches in over 150 towns and cities and has a workforce of over 4,430 employees. Sammaan Capital plays a crucial role in enabling home ownership and expanding access to credit, especially for underserved communities.
Gagan Banga, the Chief Executive Officer and Managing Director of Sammaan Capital, stated that becoming part of the IHC Group opens new opportunities for the company. He expressed confidence that Sammaan Capital's experienced team would drive the next phase of growth with renewed energy and purpose.
IHC's Strategic Expansion in India
This investment in Sammaan Capital is not IHC's first foray into the Indian market. The Abu Dhabi-based conglomerate has been actively expanding its presence in India, with previous investments including a $2 billion investment in Adani Group companies in 2022 and a minority stake in Haldiram Snacks Foods. In early 2025 IHC launched a $1 billion reinsurance joint venture with BlackRock. IHC plans to invest up to $110 billion in India over the next five years.
Syed Basar Shueb, CEO of IHC, has emphasized India's strategic importance to the company, citing its compelling long-term growth fundamentals. He also noted Sammaan Capital's leadership in promoting home ownership and empowering small businesses across the country. IHC views this $1 billion investment as a reaffirmation of its commitment to supporting Sammaan Capital's future development, which includes incorporating AI to improve lending and credit solutions and significantly contributing to India's financial ecosystem.
Significance of the Deal
IHC's investment in Sammaan Capital is expected to have several positive outcomes:
- Increased Capital Access: The infusion of capital will enable Sammaan Capital to expand its operations and offer more loans, particularly in the housing sector.
- Innovation in Credit Solutions: IHC's support will help Sammaan Capital adopt new technologies like AI to enhance its lending and credit processes.
- Financial Inclusion: By expanding access to credit, Sammaan Capital will contribute to greater financial inclusion, especially among underserved communities.
- Economic Growth: The investment underscores the strong growth potential of India's financial sector and its role in driving overall economic development.
- Enhanced Shareholder Value: The deal is expected to improve Sammaan Capital's credit rating and provide more efficient access to debt capital, ultimately benefiting shareholders.
The transaction is subject to customary closing conditions and regulatory approvals from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI). Sammaan Capital has scheduled an extraordinary general meeting for October 29, 2025, to seek shareholder approval for the preferential issue and amendments to its Articles of Association.
