Sammaan Capital Shares Surge 12% on RBI Nod for IHC Deal

Introduction

Shares of Sammaan Capital Ltd, formerly known as Indiabulls Housing Finance, surged by as much as 12% after the Reserve Bank of India (RBI) approved the proposed acquisition of a controlling stake by Avenir Investment RSC. Avenir Investment is a subsidiary of the Abu Dhabi-based conglomerate International Holding Company (IHC). This regulatory clearance is a critical milestone for the planned Rs 8,850 crore investment, which marks one of the largest infusions of capital by a Middle Eastern entity into India's financial services sector. The stock reacted positively to the news, with trading volumes increasing significantly as investors welcomed the development.

The Landmark Transaction

The deal, first outlined in an agreement dated October 2, 2025, involves Avenir Investment RSC injecting approximately Rs 8,850 crore into Sammaan Capital through a preferential issue. Upon the completion of this issue, Avenir Investment will hold an estimated 41.23% of the company's paid-up equity share capital. The transaction also includes an open offer to public shareholders. Assuming a full subscription to the open offer, the acquirer's total stake is expected to increase to approximately 63.36%, giving IHC a firm controlling interest in the non-banking finance company (NBFC).

Market Reaction and Stock Performance

Following the announcement of the RBI's approval, Sammaan Capital's stock experienced a significant rally. On Wednesday, March 25, 2026, the share price climbed as much as 12%, reaching an intra-day high of Rs 154.90 on the NSE. The surge was accompanied by a more than two-fold increase in average trading volumes, with a combined 42.9 million shares changing hands on the NSE and BSE. This positive market sentiment underscores investor confidence in the deal's potential to strengthen Sammaan Capital's financial position and support its future growth trajectory.

RBI's Conditions for Approval

While the RBI has given its go-ahead, the approval comes with specific conditions that both Sammaan Capital and Avenir Investment must adhere to. First, Sammaan Capital is prohibited from raising deposits from the public. Second, Avenir Investment must complete the entire share transfer process within one year from the date of the approval letter, which is March 24, 2026. Failure to meet this deadline will result in the cancellation of the approval. Additionally, if Avenir's shareholding were to fall below 26% post-transaction, it would require prior RBI approval to increase its stake back to 26% or higher.

Profile of the Acquirer: International Holding Company (IHC)

International Holding Company (IHC), the parent entity of Avenir Investment, is a prominent Abu Dhabi-based conglomerate and the largest listed company in the United Arab Emirates. The company is backed by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security advisor and a key figure in global finance. IHC has been pursuing an aggressive global acquisition strategy, expanding its portfolio across various sectors. This investment in Sammaan Capital aligns with its strategy of entering high-growth markets and diversifying its assets.

Sammaan Capital's Financial Health

Sammaan Capital is a leading mortgage-focused NBFC in India, serving over 1.6 million customers through a network of more than 220 branches. As of December 31, 2025, the company managed a consolidated assets under management (AUM) of Rs 64,200 crore. For the third quarter ending December 2025, the company reported a consolidated net profit of Rs 314.08 crore, a 3.85% increase from the corresponding quarter in the previous year. Its total income for the same period grew by 6.87% to Rs 2,157.87 crore. The capital infusion from IHC is expected to significantly bolster its balance sheet.

Key Transaction Summary

Analyst Outlook and Next Steps

Rating agencies like Crisil and CareEdge have taken note of the development. They view the acquisition as a positive event that will enhance Sammaan Capital's access to capital and support its medium-term business growth. However, they are maintaining a 'rating watch' until all regulatory approvals are secured and there is greater clarity on IHC's long-term business plans for the NBFC. The final regulatory hurdle for the transaction is approval from the Securities and Exchange Board of India (SEBI). Both Sammaan Capital and Avenir Investment have stated they are in active discussions with SEBI to secure this clearance expeditiously.

Conclusion

The RBI's approval is a pivotal moment for Sammaan Capital, paving the way for a transformative change in its ownership and capital structure. The Rs 8,850 crore investment from a globally recognized entity like IHC is set to provide the NBFC with the necessary resources to scale its operations and strengthen its market position. The focus now shifts to securing the final approval from SEBI, which will allow for the completion of the transaction and the beginning of a new chapter for Sammaan Capital under new leadership.