International Holding Company (IHC), an investment firm based in Abu Dhabi, has inked a deal to acquire a 41.2% stake in Indian non-bank lender Sammaan Capital for Rs 8,850 crore (nearly $1 billion).
The investment marks the UAE conglomerate’s foray into the Indian financial services segment and is the largest ever primary capital infusion by a foreign investor in an Indian non-banking financial company.
The transaction will trigger a mandatory open offer for the purchase of an additional 26.0% of Sammaan Capital at a price of Rs 139.0 each, according to an exchange filing. This is a 17% discount to Wednesday’s closing price.
The transaction is subject to customary closing conditions and receipt of necessary approvals from relevant authorities.
IHC will be classified as the promoter of Sammaan Capital, earlier known as Indiabulls Housing Finance Ltd, after the investment. It will have the right to appoint the majority of Sammaan Capital’s board of directors.
After the completion of the entire transaction, IHC may hold a stake between 41.2% and 63.4% in the non-bank lender depending on the open offer uptake. Public shareholders will hold the remaining stake.
Founded in 1999, IHC is a global investment company focused on driving growth across industries like asset management, healthcare, real estate, financial services and information technology.
The firm has a market capitalisation of $240 billion, and total assets worth $113 billion. It is the most valuable holding company in the Middle East, and is among the world's largest investment firms. The company is led by chairman Sheikh Tahnoon bin Zayed Al Nahyan, who is also serving as the chairman of Abu Dhabi Investment Authority. Syed Basar Shueb is chief executive director and managing director at the company.
The firm’s other Indian investments include Adani Enterprises and Haldiram’s.
“This 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,” Shueb said in a press note.
Sammaan Capital
Sammaan Capital, which is focused primarily on extending mortgage loans, said the capital infusion will help drive the next phase of its growth. Specifically, the investment will bolster the company’s ability to deliver strong profitable growth, improve credit-rating and lower the cost of funds, it said.
The erstwhile Indiabulls Housing Finance was founded in 2000. It faced trouble in mid-2018 as a consequence of the liquidity crisis due to the collapse of IL&FS, one of India’s non-bank lenders at the time. In 2019, the company landed in hot water when it faced accusations of sanctioning dubious loans to corporate entities and financial irregularities. Subsequently, COVID-led restrictions threw a spanner in the works.
The non-bank lender has since been on the recovery path. In 2020, Indiabulls Housing Finance founder Sameer Gehlaut stepped down as chairman. The move was aimed at transforming the housing financier into a professionally-driven company instead of a promoter-led one.
Currently, Blackstone holds a 1.3% stake in the company through an affiliate. The private equity firm had invested in the company via its real estate fund in 2021.
Indiabulls Housing changed its name to Sammaan Capital in July 2024.
Following a Rs 1,214-crore consolidated net profit in FY24, the non-bank lender has posted a net loss of Rs 1,807 crore in FY25 owing to a sharp rise in total expenses. Specifically, impairment on financial instruments jumped nearly seven-fold to nearly Rs 5,069 crore in FY25.
While the company is running down its legacy assets, its assets under management rose 41% year-on-year to Rs 37,452 crore as on March 31. Broadly, the company intends to increase its consolidated AUM to over Rs 1 trillion by FY27, fuelled by a rise in disbursals.
Currently, the non-bank lender operates 220 branches across 150 towns and cities. It also operates an affordable housing loan arm Sammaan Finserve.