IHC, the most valuable listed holding company in the Middle East, through its affiliate, Avenir Investment RSC LTD will buy the stake via a preferential allotment of equity shares and warrants in Sammaan Capital.
Sammaan Capital has received an initial tranche of Rs 5,652 crore (USD 600 million) towards the allotment of equity shares and warrants, with an additional Rs 3,198 crores (USD 338 million) to be received within a period of 18 months upon conversion of the warrants into fully paid equity shares, according to a company statement.
Avenir shall work on concluding the open offer within 30 days, which was announced at Rs 139 per share of Sammaan Capital. Upon completion of the open offer, and assuming full uptake in the open offer, IHC, through Avenir will hold 63.3 per cent stake in Sammaan Capital, it added.
Sammaan Capital offers affordable home loans and MSME financing through a blend of digital innovation and on-ground reach.
IHC’s investment in Sammaan Capital, one of the 15 Upper Layer NBFCs in India, marks a significant milestone, elevating it into a select group of large Upper-Layer NBFCs backed by a multinational conglomerate and strengthening its position among leading, well-capitalized financial institutions in the country, the company said.
As a strategic Promoter, IHC brings substantial capital, global funding networks and institutional relationships that will meaningfully enhance Sammaan Capital’s financial flexibility and support its growth ambitions, it added.
As an IHC Group company, Sammaan Capital will look to leverage the strong AA sovereign credit rating of the United Arab Emirates to strengthen its domestic and international credit ratings.
With a stronger capital base, an upgraded credit profile, and deeper access to diversified funding at competitive pricing, Sammaan Capital said it aspires to be in the top 3 NBFCs in India in terms of AUM (“Assets Under Management”), achieving best in class Return on Assets (“RoA”) and Return on Equity (“RoE”), by FY 2029.
Sammaan Capital shall transition from a pure play mortgage financier to a diversified NBFC by targeting mid to low- income borrowers through its expanding pan India branch network offering products going beyond mortgage loans to retail products including secured/unsecured MSME, personal loans, business loans, gold loans, etc.
As part of IHC’s broader global financial services strategy, IHC has established a dedicated subsidiary, Judan Financial, which manages over Rs 22.4 lakhs crores (USD 235 billion). Judan aims to bring together its banking, fintech, and asset management interests across more than 13 countries. Sammaan Capital will be consolidated as a core investment under Judan Financial within the IHC group.
Sammaan Capital will not only anchor Judan’s presence in India but also have access to its asset management experience enabling it to create a large India focused alternate/private credit platform, forming a key pillar of this integrated international structure. Built as an AI-enabled platform, UAE-based Judan Financial is positioned as a leading diversified global financial services investment platform.
“This milestone marks an important step in our long-term strategy to expand in India’s financial services sector. By becoming a promoter of Sammaan Capital, we are reinforcing our commitment to long-term value creation and supporting a platform that plays a critical role in enabling home ownership and access to credit. We see significant opportunities to enhance capabilities, including through the adoption of AI, and to contribute meaningfully to India’s financial ecosystem,” Syed Basar Shueb, CEO of IHC, said, in a statement.
“We formally welcome IHC as our Promoter. This partnership brings long-term, growth capital and deep global capabilities — both of which will be instrumental in helping us scale responsibly and reinforce our leadership position in the market,” Gagan Banga, Managing Director & CEO of Sammaan Capital Ltd, said in a statement.
India’s NBFC sector has seen a slew of important deals. In December, Japan’s MUFG Bank agreed to invest Rs 39,618 crore in Shriram Finance Ltd for a 20 per cent stake, making it the largest foreign direct investment in a financial services company in India.
