Sammaan Capital Secures 41.5% Stake Acquisition by IHC for USD 1 Billion

Sammaan Capital Limited has entered into a strategic agreement with International Holding Company PJSC (IHC) for the acquisition of a 41.5% stake in the company. The transaction is valued at approximately USD 1 billion, with IHC set to become the Promoter of Sammaan Capital. This acquisition is facilitated through a preferential allotment of equity shares and warrants, marking a significant development in Sammaan Capital’s corporate structure.

The financial terms of the transaction include an initial tranche of INR 5,652 crores received by Sammaan Capital for the allotment of equity shares and warrants. An additional INR 3,198 crores is expected within 18 months upon the conversion of warrants into fully paid equity shares. The transaction also involves a mandatory tender offer at INR 139 per fully paid equity share, targeting up to 26% of the company’s expanded share capital from public shareholders. Upon completion, IHC’s stake could increase to 63.3%.

Operationally, this acquisition aligns Sammaan Capital with IHC’s financial services platform, Judan Financial. Sammaan Capital will leverage IHC’s global funding networks and institutional relationships to enhance its financial flexibility. The company plans to transition from a mortgage-focused NBFC to a diversified financial services provider, expanding its product offerings to include MSME, personal, business, and gold loans. This strategic shift aims to broaden its customer base and strengthen its market position.

The timeline for the transaction includes the completion of the initial stake acquisition and the subsequent conversion of warrants over an 18-month period. The mandatory tender offer is expected to be concluded within 30 days, as per regulatory guidelines. These steps are part of a phased approach to integrate Sammaan Capital into IHC’s strategic framework.

The parties involved in this transaction are Sammaan Capital Limited and IHC, through its affiliate Avenir Investment RSC Ltd. IHC will assume strategic control and long-term stewardship of Sammaan Capital, with rights to appoint a majority of the Board. This partnership is expected to enhance Sammaan Capital’s operational capabilities and support its growth ambitions in the financial services sector.

In the context of the Indian market, this acquisition positions Sammaan Capital among the country’s largest non-banking financial companies (NBFCs). The move aligns with IHC’s strategy to expand its presence in India’s financial services sector, leveraging the country’s growing economy and regulatory framework. Sammaan Capital’s integration into Judan Financial is expected to bolster its role in advancing financial inclusion and supporting economic growth.

International Holding Company PJSC is a prominent investment firm focused on sustainability, innovation, and economic diversification. It operates across key sectors including technology, infrastructure, financial services, and consumer markets. IHC’s strategic investments aim to create dynamic value networks and unlock opportunities across its portfolio.

Sammaan Capital Limited is one of India’s largest Upper Layer NBFCs, regulated by the Reserve Bank of India. The company offers a range of financial products through a network of branches and channel partners, focusing on accessibility and customer-first service. Sammaan Capital is committed to empowering individuals and businesses with practical financial solutions.