Sammaan Capital, formerly Indiabulls Finance, which has been a pure-play mortgage lender all these years, will be entering into other credit segments including retail loans as it enters a new growth phase under the ownership of the Abu Dhabi-based International Holding Company (IHC).
In a statement on Tuesday, the Gagan Banga-founded company said the UAE-group, which is the largest listed company in the Emirate with a market capitalisation of $239 billion, has become the promoter of the company effective Tuesday, upon a preferential allotment of 41.5% equity shares and warrants to Avenir Investment, an affiliate of IHC.
The RBI has approved the $ 1 billion investment for a controlling stake last week
“Sammaan 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. Avenir will also launch and an open offer within the next 30 days at Rs 139 a share of Sammaan. Upon completion of the open offer, and assuming full uptake in the open offer, IHC, through Avenir will hold 63.3% stake in Sammaan,” the company said in a statement.
Sammaan will anchor IHC’s India financial services ambitions under its new global financial services platform, Judan Financial which manages over $235 billion of assets and aims to bring together its banking, fintech, and asset management interests across more than 13 countries. Sammaan will be consolidated as a core investment under Judan Financial within the IHC group.
Going forward, Sammaan aims to be among the top three non-banks with a diversified portfolio by fiscal 2029, Banga said, adding “from being a pure-play mortgage lender, Sammaan shall transition to a diversified NBFC by targeting mid to low-income borrowers through its expanding its branch network offering products going beyond mortgage loans to retail products including secured/unsecured MSME, personal loans, business loans, gold loans etc.”
This shall be achieved by keeping compliance and risk management at the core of operations. IHC’s institutional strength and global ecosystem will further support Sammaan with enhanced digital capabilities, as well as high governance standards aligned with global best practices, he added.
Sammaan is currently one of the 15 upper layer NBFCs in the country.
As the promoter, IHC brings substantial capital, global funding networks and institutional relationships that will meaningfully enhance Sammaan Capital's financial flexibility and support its growth ambitions and as an IHC Group company, Sammaan will look to leverage the strong AA sovereign credit rating of the UAE to strengthen its domestic and international credit ratings.
Banga further said by FY29 the company aims to have a branch net work of over 1,500 from the present 200 plus and to have around 50 million customers from the present 1.4 million and hire 6000 more people from the present headcount of 4,000 plus.