Sammaan Capital conversion lifts Avenir stake to 33.32%

Sammaan Capital’s conversion of 8,68,92,966 Tranche I warrants on 30 October 2026 lifted Avenir (IHC, or International Holding Company) from 28.34% to 33.32% and brought Rs 906 crore of balance consideration, while 21,97,97,569 remaining warrants could take its stake to 43.28% by 30 September 2027.

What happened in Sammaan Capital’s Tranche I warrant conversion?

Sammaan Capital completed the conversion of Avenir’s Tranche I warrants on 30 October 2026. The tranche comprised 8,68,92,966 warrants, and its conversion increased the company’s equity-share count from 1,16,45,56,844 at 30 September 2026 to 1,25,14,49,810. Avenir’s holding consequently rose by 4.98 percentage points, from 28.34% before conversion to 33.32% after it.

The shareholding-pattern table dated 13 November 2026 reports Avenir’s promoter holding as 33.3%, the rounded presentation of the 33.32% tranche-conversion outcome. Other holders at that date included public shareholders with 41.8%, foreign institutional investors with 19.3%, mutual funds, banks, Indian financial institutions and insurers with 3.8%, the Employee Welfare Trust with 1.3%, and employees including key management personnel and senior management personnel with 0.5%.

The transaction was an exercise of existing warrants. Sammaan Capital identifies Rs 906 crore as the 75% balance consideration for Tranche I under the warrant structure. The company presents the resulting 33.32% stake as achieved, whereas the 43.28% level remains conditional on conversion of the second tranche.

How much capital has Sammaan Capital received and what remains?

Sammaan Capital received Rs 906 crore through the Tranche I balance consideration, and Rs 2,291 crore remains attached to Tranche II. Together, the two warrant tranches represent Rs 3,197 crore of balance consideration for 30,66,90,535 warrants, with the presentation also showing a dollar equivalent of $340 million for the total.

Tranche II consists of 21,97,97,569 warrants, more than twice the 8,68,92,966 warrants converted in Tranche I. Its Rs 2,291 crore balance consideration is also larger than the Rs 906 crore received in the first conversion. The presentation states that the remaining warrant funds may be received in one instalment or multiple instalments up to 30 September 2027, the validity date for the warrants.

The balance consideration changes the capital base used in Sammaan Capital’s illustrative book-value calculation. Net worth is shown at Rs 19,445 crore at 30 September 2026 before conversion, Rs 20,351 crore after adding the Rs 906 crore Tranche I consideration, and Rs 22,642 crore after adding the further Rs 2,291 crore assumed for full Tranche II conversion.

How would Tranche II change Sammaan Capital’s ownership structure?

Sammaan Capital says full conversion of Tranche II would take Avenir’s promoter stake to 43.28% by 30 September 2027. That outcome assumes no other change in share capital, meaning the stated percentage is based on the 1,47,12,47,379 equity shares expected after the remaining warrants are exercised.

The full-conversion scenario would add 21,97,97,569 shares after the 30 October 2026 Tranche I conversion, compared with 8,68,92,966 shares issued in the first tranche. For holders other than Avenir, the mechanism is an enlarged total share count: equity shares would rise from 1,25,14,49,810 after Tranche I to 1,47,12,47,379 following Tranche II, while Avenir’s ownership percentage would rise from 33.32% to 43.28%.

The 43.28% figure is not reported as the shareholding as of 13 November 2026. It is a projected post-conversion stake tied to the remaining warrants and the 30 September 2027 deadline. Sammaan Capital separately labels the 33.32% Tranche I position as achieved and the Tranche II result as dependent on conversion of the remaining warrants.

What does the warrant conversion imply for Sammaan Capital’s book value per share?

Sammaan Capital’s illustrative book value per share falls from Rs 167.0 before conversion to Rs 162.6 after Tranche I and Rs 153.9 after full Tranche II conversion. The measure declines in the presentation even as net worth increases from Rs 19,445 crore to Rs 22,642 crore, because the equity-share count rises from 1,16,45,56,844 to 1,47,12,47,379.

The company’s methodology uses 30 September 2026 net worth plus the cumulative 75% balance consideration per warrant, divided by the shares issued on conversion. It expressly assumes no profits or retained earnings after 30 September 2026. Therefore, the Rs 162.6 and Rs 153.9 figures are warrant-conversion illustrations under that stated assumption, not reported future book values.

Conclusion

Sammaan Capital has completed the first of two disclosed warrant-conversion stages, adding Rs 906 crore and moving Avenir from 28.34% to 33.32%. The transaction also expanded outstanding equity shares by 8,68,92,966, while the company’s stated book-value illustration moved from Rs 167.0 per share before conversion to Rs 162.6 after the first tranche.

The next disclosed event is the potential receipt and conversion of Rs 2,291 crore linked to 21,97,97,569 Tranche II warrants by 30 September 2027. Whether Avenir reaches the indicated 43.28% stake depends on those warrants being converted, with Sammaan Capital noting that funds can arrive in single or multiple tranches during the remaining validity period.