Abu Dhabi’s ruling family-owned International Holding Company(IHC) has shown interest in buying a 41% stake in India’s Sammaan Capital, previously known as Indiabulls Housing, for Rs. 8,850 crore. At $1 billion, this marked the largest international investment in India’s NBFC sector.
The Investment will be made through preferential allotment of equity and warrants at around Rs. 139. This is a lot lower than Wednesday’s closing price of Rs. 170. Moreover, the acquisition will also trigger a mandatory open offer for an additional 26% of the company. This means that IHC’s stake in the company can rise to over 63%, depending on the response to the offer.
After the transaction is complete, IHC will be declared a promoter of the NBFC and will have the right to appoint a majority of Sammaan’s directors.
The MD and CEO of Sammaan Capital, Gagan Banga, shared his views on the development and said, “Under IHC’s parentage, we will continue to focus on providing affordable housing finance and mid-market mortgage solutions, leveraging IHC’s technology capabilities.”
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Sammaan Capital traces its roots back to Indiabulls Financial Services, which was founded by the trio of IIT Delhi alumni Sameer Gehlaut, Rajiv Rattan, and Saurabh Mittal. Initially, the company only dealt in stockbroking, but later branched out into consumer and housing finance and was then listed in 2004.
This investment marks a historic milestone for India, and with this, more foreign investment is poised to come India’s way.
