The Competition Commission of India has approved Abu Dhabi’s IHC to acquire a 43.46% stake in Sammaan Capital for $1 billion. This landmark deal, executed through IHC’s affiliate Avenir Investment RSC Ltd., marks the largest foreign capital infusion in an Indian NBFC and will trigger a mandatory open offer under SEBI rules.
The Competition Commission of India (CCI) has approved International Holding Company (IHC), Abu Dhabi’s flagship investment firm, to acquire a 43.46% stake in Sammaan Capital, a leading non-banking financial company in India. The landmark $1 billion (₹8,850 crore) deal, executed through IHC’s affiliate Avenir Investment RSC Ltd., marks one of the largest foreign capital infusions in India’s NBFC sector and positions IHC as a key promoter of Sammaan Capital.
Notable Updates:
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The acquisition involves the preferential issue of shares and warrants by Sammaan Capital to Avenir Investment RSC Ltd.
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The deal was approved by Sammaan Capital’s shareholders and has now received CCI clearance.
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The transaction triggers a mandatory open offer under SEBI regulations for an additional 26% stake, potentially raising IHC’s holding up to 63.4% on a fully diluted basis.
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IHC plans to leverage Sammaan Capital’s distribution network and integrate AI-driven lending and credit solutions, aiming to boost product innovation and expand access to credit.
Major Takeaways:
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This is the largest primary investment by a single global investor in an Indian NBFC, signaling strong international confidence in India’s financial services sector.
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The partnership is expected to enhance Sammaan Capital’s capital strength and accelerate its growth trajectory.
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Both companies have stated that the deal will not adversely affect competition in any relevant market segment.
Sources: Competition Commission of India, NSE Circular, Sammaan Capital Press Release, Reuters, Economic Times, Moneycontrol