Abu Dhabi-based International Holding Company (IHC) has made a landmark $1 billion investment to acquire a 43.5% controlling stake in Sammaan Capital Limited (formerly Indiabulls Housing Finance), spotlighting renewed foreign confidence in India’s NBFC space. This deal signals a strategic entry of IHC into India’s financial services sector and marks the largest-ever primary capital infusion by a single foreign investor into an Indian NBFC.
Key Highlights
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Deal Details: IHC’s affiliate Avenir Investment RSC Ltd will subscribe to 330 million equity shares and 307 million convertible warrants at a discounted price of Rs 139 per share, totaling Rs 8,850 crore.
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Ownership Impact: This acquisition triggers a mandatory open offer for an additional 26%, potentially raising IHC’s stake to around 63.4%, granting it promoter status with majority board control.
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Strategic Vision: IHC plans to leverage AI and technology to enhance credit solutions, underscoring confidence in Sammaan Capital’s leadership in affordable housing finance and mid-market mortgages.
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Market Moves: The news has rejuvenated NBFC stocks, with Sammaan Capital, Bajaj Finance, and Cholamandalam Financial trading near their 52-week highs amidst RBI support for sector fund availability.
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Regulatory Approvals: The deal awaits clearances from RBI, SEBI, and CCI, with Sammaan Capital’s board and shareholders set to approve the transaction by month-end.
This infusion is expected to strengthen Sammaan Capital’s balance sheet, expand credit access, and accelerate growth in India’s burgeoning housing finance market. The deal is a clear green light for NBFC stocks, boosting sector optimism in the broader financial ecosystem.
Source: Financial Express, Times of India, Moneycontrol