Abu Dhabi's IHC invests $1 billion for controlling stake in Sammaan Capital in a bet on India's housing finance space

"We have been impressed by Sammaan Capital’s leadership in enabling home ownership and empowering small businesses across the country. This $1 billion investment reaffirms our commitment to supporting Sammaan Capital in its next phase of development, including the adoption of AI to enhance lending and credit solutions, and to contributing meaningfully to India’s financial ecosystem," Syed Basar Shueb, CEO of IHC said.

IHC has become a major holding company in the Middle East and one of the world's largest investment firms with a market capitalization of AED 881.6 billion ($239.9 billion). IHC has been ramping up its India presence with high-profile investments, including deals with the Adani Group and snack maker Haldiram’s.

Global Expertise for Sammaan

Commenting on the deal, Gagan Banga, Managing Director & CEO of Sammaan Capital said, "Becoming part of the IHC family is a milestone that will help us further strengthen our affordable housing and mid-market mortgage offerings. Leveraging IHC’s global expertise and technology strengths, we are confident of accelerating our next phase of growth with renewed purpose." Sammaan Capital is a mortgage lender with 220 branches across 150 towns and cities, supported by over 4,400 employees.

The deal remains subject to approvals from the Reserve Bank of India, the Competition Commission of India, and other customary conditions. The agreement also offers IHC's affiliate Avenir the right to nominate board members.

India’s housing finance segment is worth Rs 33 lakh crore ($372 billion) and is projected to more than double by FY30 on rising urbanisation, improved affordability, and government housing schemes, according to a CareEdge Ratings note.
New Dy CEO Appointment

Earlier in September, Himanshu Mody, known as one of the key persons behind the turnaround of Suzlon, was appointed as the Deputy CEO of Sammaan Capital. Mody’s appointment is expected to boost Sammaan's ability to raise capital. "Himanshu Mody has demonstrated expertise across key finance functions including fundraising, strategic planning, and mergers & acquisitions," the NBFC had said on September 4 following the announcement.

The lender also cited his achievement in improving Suzlon's market capitalisation and revival of credit rating in its statement. "During his tenure, he spearheaded a remarkable financial turnaround—raising substantial equity and debt from varied sources, restoring liquidity, and reviving credit ratings. His efforts culminated in a 22-fold surge in Suzlon’s market capitalization, underscoring his ability to deliver results under complex conditions."

Sammaan Share Price

After the announcement, the shares of Sammaan Capital were lower by over 3 percent in early trade on October 3. On a YTD basis, the shares are up nearly 10 percent and higher by 5 percent over last one year. The underperformance of last three years has resulted in the stock rising by only 30 percent. However, in the last one month alone, the shares are higher by more than 20 percent.