Sammaan Capital Soars After RBI Approves Rs 8,850 Cr IHC Deal

Introduction

Sammaan Capital Limited has received a crucial approval from the Reserve Bank of India (RBI) for the acquisition of a controlling stake by Avenir Investment RSC Ltd, a subsidiary of the Abu Dhabi-based conglomerate International Holding Company (IHC). The central bank's clearance for the Rs 8,850 crore transaction marks a significant milestone, moving the deal closer to completion. The news prompted a strong positive reaction from the market, with Sammaan Capital's shares hitting the 10% upper circuit.

Details of the Landmark Transaction

The deal involves a substantial capital infusion of Rs 8,850 crore from Avenir Investment into Sammaan Capital. This will be executed through a preferential issue of over 33 crore equity shares at Rs 139 apiece, raising Rs 4,587 crore, with the remainder coming through warrants. This investment is poised to be one of the largest primary capital infusions in an Indian non-banking financial company (NBFC). Upon completion of the preferential allotment, Avenir Investment will hold an initial stake of approximately 41.23% in the company.

The Path to Control: Open Offer

The acquisition triggers a mandatory open offer for an additional 26% of Sammaan Capital's shares from public shareholders. Avenir Investment will launch this open offer, which could potentially increase its total shareholding to 63.36%. If the open offer is fully subscribed, IHC will become the new promoter of Sammaan Capital, formerly known as Indiabulls Housing Finance, and will have the right to appoint a majority of the company's Board of Directors.

Regulatory Hurdles Cleared

The journey to this stage has involved securing approvals from multiple regulatory bodies. The Competition Commission of India (CCI), the country's fair-trade regulator, gave its clearance in December 2025, confirming that the transaction would not adversely affect market competition. The recent approval from the RBI was one of the most critical regulatory hurdles. The central bank also granted a waiver for the mandatory public notice period, which could help accelerate the final stages of the transaction.

RBI's Conditions for Approval

While granting its approval, the RBI has attached specific conditions to the clearance. First, Sammaan Capital will not be permitted to raise public deposits. Second, Avenir Investment must complete the entire share transfer process within one year from the date of the approval letter, failing which the clearance will be cancelled. Additionally, the RBI has stipulated that if Avenir's shareholding in Sammaan Capital falls below 26% at any point, it will require prior approval from the central bank to increase its stake back to 26% or higher.

Market Reacts Positively

Investor sentiment turned overwhelmingly positive following the announcement. Sammaan Capital's share price surged, hitting its 10% upper circuit on the National Stock Exchange. This performance stood out against the benchmark Nifty 50, which saw a modest advance of 1.4% on the same day. The stock has demonstrated strong performance over the past year, recording a 28% gain in the last 12 months and a 4.6% increase on a year-to-date basis.

Transaction at a Glance

Strategic Implications for Sammaan Capital

This acquisition is set to be transformative for Sammaan Capital. The significant capital injection will provide the company with substantial resources to expand its lending operations, strengthen its capital adequacy, and invest in technology. The backing of a globally diversified entity like IHC provides not just financial muscle but also strategic guidance and access to international networks. For IHC, this investment marks a significant foray into India's growing financial services sector, aligning with its strategy of diversifying its portfolio in high-growth markets.

Conclusion: Awaiting the Final Step

Sammaan Capital stands at the cusp of a new era, with major regulatory approvals for its acquisition by IHC's subsidiary now in place. The RBI's conditional nod has cleared a major hurdle, leaving only the final approval from the Securities and Exchange Board of India (SEBI) pending. The successful completion of this Rs 8,850 crore deal will not only reshape Sammaan Capital's future but also underscore the attractiveness of India's financial sector to large international investors. All eyes are now on SEBI for the final go-ahead that will formally seal the transaction.