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RBI okays Abu Dhabi-based IHC's takeover of Sammaan Capital

The capital infusion is designed to help Sammaan expand into affordable housing and scale up AI-driven lending solutions, with a goal of achieving Rs 1 trillion in assets under management by FY27.

Express News Service

MUMBAI: Leading non-bank lender Sammaan Capital, formerly Indiabulls Housing Finance, has said the Reserve Bank has approved the acquisition of its 66.65% stake by Avenir Investment RSC, a subsidiary of Abu Dhabi-based International Holding Company (IHC), for around $1 billion. The news sent its stock price soaring 11% to Rs 155.52.

The company further said the central bank has also cleared the appointment of IHC nominee Alwyn Dinesh Crasta as a director on the board for a period of up to five years.

Sammaan said Avenir plans to invest Rs 8,850 crore through a preferential issue. Post-allotment, Avenir is expected to hold around 41.23% stake, which could increase to 63.36% after the preferential issue and open offer.

Sammaan had announced that IHC was investing $1 billion to acquire an initial stake of over 43% through a preferential allotment of equity shares and convertible warrants at Rs 139 per share. This would follow an open offer for an additional 26%, making IHC the promoter of the company owning over 66.6%.

The capital infusion is designed to help Sammaan expand into affordable housing and scale up AI-driven lending solutions, with a goal of achieving Rs 1 trillion in assets under management by FY27.

The IHC deal is the second largest primary capital infusion by a single investor into a domestic non-bank, after the MUFG Bank’s $4.4-billion investment in Shriram Finance for a 20% equity.

"On completion of the preferential issue, the acquirer shall hold around 41.23% of the paid‑up equity share capital of the company. Further, on completion of the preferential issue and the open offer, and assuming full uptake in the open offer, the acquirer shall hold around 63.36% of the paid‑up equity share capital," said Sammaan Capital in a stock exchange filing.

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