Sammaan Capital Limited (formerly Indiabulls Housing Finance) said on Thursday that a unit of Abu Dhabi’s International Holding Company (IHC) has entered into an agreement to invest nearly  $1 billion (?8,850 crore) for a 43.46 per cent stake in the non-banking financial  company (NBFC).
 
The board of Sammaan Capital, an upper-tier NBFC, approved a preferential allotment of 330 million equity shares and 307 million warrants worth approximately ?8,850 crore to Avenir Investment RSC Ltd, a unit of IHC, paving the way for the global investor to assume promoter status with a 43.46 per cent holding. Under Securities and Exchange Board of India (Sebi) regulations, the transaction triggers a mandatory open offer, giving minority shareholders an exit option due to the change in ownership.

The deal marks IHC’s entry into India’s financial services sector and represents the largest primary capital infusion by a single investor into an NBFC in the country, according to a joint statement by both companies.
 
At its meeting on Thursday, the board cleared the issuance of 330 million equity shares at ?139 each, an 18 per cent discount to Wednesday’s closing price of ?169.55, aggregating to about ?4,587 crore. It also approved 307 million warrants, convertible into equity shares, for around ?4,263 crore. The equity markets were closed on Thursday for a national holiday.

“The transaction will trigger a mandatory open offer for the purchase of an additional 26 per cent stake in the company on an expanded capital basis. Based on the open offer subscription, IHC’s stake post-investment will range between 41.2 per cent and 63.4 per cent on a fully diluted basis, including shares from warrant conversion,” the joint statement said. As a promoter, IHC will have the right to nominate the majority of the board of directors.

The agreement also grants IHC certain pre-emption and information rights.
 
The investment will be executed in tranches and is subject to shareholder and regulatory approvals, including from the Reserve Bank of India, Sebi, and the Competition Commission of India. Upon completion, IHC’s Avenir will hold up to 43.46 per cent of Sammaan Capital and assume promoter status.
 
Sammaan Capital will seek shareholder approval for the preferential issue and amendments to its Articles of Association at an extraordinary general meeting scheduled for October 29. 

“IHC’s $1 billion investment underscores its conviction in the long-term potential of India’s financial sector and its commitment to expanding access to capital, accelerating innovative credit solutions, and supporting inclusive growth,” the Abu Dhabi investor stated. The investment strengthens IHC’s global portfolio and reinforces its presence in one of the world’s most dynamic financial markets, it further said.

“India represents a core strategic market for us, and its long-term growth fundamentals are compelling,” said Syed Basar Shueb, CEO of IHC. “This $1 billion investment reaffirms our commitment to supporting Sammaan Capital in its next phase of development, including the adoption of AI to enhance lending and credit solutions, and to contributing meaningfully to India’s financial ecosystem.”
 
As of June 30, Sammaan Capital’s assets under management stood at ?62,378 crore, and it posted a net profit of ?334 crore during the April–June period.
 
“Sammaan Capital’s journey has been anchored in resilience, adaptability, and stakeholder value creation. Joining the IHC Group opens new horizons for us. The alignment in our aspirations is deeply encouraging, and we believe our experienced and dynamic team will drive the next phase of growth with renewed energy and purpose,” said Gagan Banga, CEO and managing director of Sammaan Capital.