Synopsis:
Avenir Investment will invest Rs 8,850 crore in Sammaan Capital at an 18% discount to market price, acquiring a 43.46% stake and becoming promoter. The deal triggers an open offer, significantly reshaping ownership structure.
Known for its presence in the financial services sector, the company is set to witness a major development with a large investment proposal. Avenir Investment plans to infuse Rs 8,850 crore at a discount, securing significant ownership and triggering an open offer, reshaping its shareholding structure.
Sammaan Capital Limited‘s stock, with a market capitalisation of Rs. 13,360 crores, fell to Rs. 159.03, hitting a low of up to 6.22 percent from its previous closing price of Rs. 169.58. However, the stock over the past year has given a return of 1.04 percent.
Acquisition Update
Avenir Investment is putting Rs. 8,850 crore into a company by buying shares and warrants at Rs. 139 each, which is 18% lower than the market price ageed upon. They’ll spend Rs. 4,587 crore to buy shares directly and use the rest to buy warrants, which let them purchase more shares later at the same price. This investment will be split into two phases for the warrants.
After this deal, Avenir will own 43.46% of the company, making it a major shareholder. Because of this large stake, they’re required to make an open offer, which means they’ll offer to buy shares from other shareholders of the company. This is a standard rule to ensure fairness when someone gains significant control. This is an affiliate of International Holding Co.
About the UAE company
International Holding Co. (IHC), one of the world’s biggest investment groups, is reportedly set to buy a controlling stake in Sammaan Capital Ltd, earlier known as Indiabulls Housing Finance, for about $1 billion through this deal.
Sammaan Capital is a mortgage-focused NBFC that serves 1.6 million customers through 220 branches across the country. A formal announcement of the deal is expected on Thursday. The company had already informed stock exchanges earlier this week that its board would meet on October 2 to consider raising funds through equity, convertible instruments, debt securities, or warrants.
The Acquirer
IHC, the largest listed company in the UAE with a market value of about 883 billion dirhams ($240 billion), has been expanding rapidly through acquisitions worldwide. In India, it has already placed big bets, including a $2 billion investment in Adani Group firms through preferential allotments in 2022, and a minority stake in Haldiram Snacks Foods along with Alpha Wave Global. Earlier this year, it also launched a $1 billion reinsurance joint venture with BlackRock.
Looking ahead, IHC has ambitious plans for India, with proposed investments of up to $110 billion over the next five years. Globally, the company is also aiming to double its asset base to 800 billion dirhams ($218 billion) and reach 200 billion dirhams in annual revenue by the end of this decade.
Q1 Financial Highlight
In Q1FY26, the company reported revenue of Rs. 2,400 crore, up 8.7% YoY from Rs. 2,207 crore in Q1FY25 and 13.9% QoQ from Rs. 2,107 crore in Q4FY25. The strong sequential growth highlights improved operational momentum compared to the previous quarter.
Profit for Q1FY26 stood at Rs. 334 crore, reflecting a modest 2.1% YoY rise from Rs. 327 crore and a 3.1% QoQ increase from Rs. 324 crore. While revenue growth was robust, profit expansion remained relatively subdued, indicating stable margins.
Sammaan Capital, along with its subsidiary Sammaan Finserve, had assets under management (AUM) of Rs. 62,346 crore as of March, with housing loans making up 73% of the portfolio, loans against property 18%, and the rest in commercial credit.
Its growth AUM rose to Rs. 37,000 crore in FY25 from Rs. 26,000 crore a year earlier. Despite reporting a one-time loss of Rs. 2,718 crore, the company’s asset quality stayed firm, with gross NPAs at 0.54% and net NPAs at 0.29%.
The firm has been reshaping its business to focus on an asset-light retail model by adopting co-origination and loan sell-down strategies. As part of its long-term plans, Sammaan Capital aims to grow its AUM to Rs. 1 lakh crore and expand its branch network to 350 by FY27.
Written By Fazal Ul Vahab C H
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