Sammaan Capital becomes UAE based IHC Group company, receives ₹5,652 crore

Sammaan Capital Ltd. formerly IndiaBulls Housing Finance Ltd on Tuesday announced that West Asia’s IHC, with market cap of $232 billion through its affiliate, Avenir Investment RSC Ltd. will become the Promoter of Sammaan Capital Ltd. by acquiring 41.5% stake via a preferential allotment of equity shares and warrants.

Sammaan Capital said it has received an initial tranche of $5,652 crore ($600 million) towards the allotment of equity shares and warrants, with an additional ₹3,198 crore ($338 million) to be received within 18 months upon conversion of the warrants into fully paid equity shares.

In accordance with applicable guidelines, Avenir will work on concluding the open offer within 30 days, which was announced at ₹139 per fully paid equity 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% stake in Sammaan Capital.

“Sammaan Capital enters this new chapter from a position of structural strength, with full capacity and intent to grow,” the company said.

With a stronger capital base, an upgraded credit profile, and deeper access to diversified funding at competitive pricing, Sammaan Capital aspires to be in the top 3 NBFCs in India in terms of AUM, it said.

Now the company will transition from a pureplay 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 and gold loans.

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,” it said.

Syed Basar Shueb, CEO IHC, said “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,” he added. 

Gagan Banga, Managing Director & CEO, Sammaan Capital Limited, said “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.”

“Having an institution of IHC’s standing as our parent company provides a strong foundation for the future — one that extends well beyond financial backing. IHC brings in highest standard of world class governance practices, compliance and risk management framework, which we shall implement,” he said.

“Our growth strategy will operate with the foremost philosophy of ‘customer first’. We will be committed to responsible lending practices by staying connected to communities and ensuring that we make a positive difference towards the society for every loan that we disburse. Over next few years, investments in people and digital landscape, especially artificial intelligence, shall be augmented on priority,” he added.