The International Holding Company from Abu Dhabi, International Holding Co. (IHC), has made an investment of approximately $1 billion in leading Indian mortgage lender Sammaan Capital Ltd. This underscores the growing interest of foreign investors in India’s financial market and marks one of the largest investments from the Middle East in this sector.
This is reported by Finway
Key Terms of the Deal and Ownership Structure
The investment was made through IHC’s subsidiary – Avenir. Upon completion of the transaction, the company will acquire approximately 43.5% of Sammaan Capital’s shares. As part of the agreement, the Indian lender will issue 330 million new shares and 306.7 million warrants at a price of 139 rupees ($1.567) per unit, which is 18% lower than the last market price. According to Indian legislation, after the deal closes, Avenir will be required to make an open offer to other shareholders.
Sammaan Capital: Market Position and New Trends
Founded in 2005, Sammaan Capital is one of the largest mortgage lenders in India. To date, the company has over 200 branches and serves approximately 1.4 million customers, with a balance sheet of $8.3 billion. The latest investment demonstrates a new trend among foreign investors, who are increasingly seeking to acquire controlling stakes in Indian companies, whereas previously they were limited to minority stakes.
The deal comes amid strengthening political and economic ties between the United Arab Emirates and India. It has become one of the largest investments from the Middle East in India’s financial sector. In September of this year, Japan’s Sumitomo Mitsui Financial Group also acquired an additional stake in Indian Yes Bank, indicating an increase in the momentum of international capital in the industry.
“The deal also reflects a trend among foreign investors seeking controlling stakes in Indian companies, unlike in the past when they were satisfied with minority holdings.”