NBFC Sammaan Capital shares fell 5% on October 3 to snap their six-day gaining streak after the company approved Rs 8,850-crore preferential issue to Global investment company International Holding Co (IHC) at Rs 139 per share.
The investment has been carried out through IHC's affiliate Avenir Investment RSC, which will be subscribing to 330 million equity shares and 306.7 million convertible warrants at Rs 139 each. This will also trigger an open offer as per the regulatory guidelines, to acquire an additional 26%.
At 9:55 am on October 3, Sammaan Capital shares were trading 4.1% lower at Rs 162.59 apiece.
Analysts told CNBC Awaaz that the stock's book value is likely to fall from Rs 250-260 to nearly Rs 200-210 per share due to big equity dilution at lower levels.
Assuming write offs of Rs 3,000 crore for FY26 and 0.9x price to book multiple there's very limited upside from current levels," said analysts.
“The $1 billion investment reflects IHC’s conviction in India’s financial sector and its commitment to widening access to capital,” the Abu Dhabi-headquartered group said. With this deal, IHC has forayed into the financial services sector in India through a major primary capital infusion into a non-bank financial company.
"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.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
