Mega Deal: Housing Finance Stock Sammaan Capital Drops 6% Despite IHC's Open Offer To BUY Rs 8,850 Cr Stake

Sammaan Capital, a housing finance company trading as midcap, declined by more than 6% on BSE despite a mega open offer by Abu Dhabi-based investment company IHC to acquire stakes worth Rs 8,850 crore in the company. IHC continues to reinforce conviction in India's NBFC sector as a driver of credit access and financial inclusion. However, this did little to sway investors' sentiment, as Sammaan Capital shares continued to trade on a bearish note.

Sammaan Capital Share Price: {image-
sammaancapitalshareprice1-1759474958.jpgwww.goodreturns.in}

At the time of writing, Sammaan Capital shares traded at Rs 162.20 apiece, down by 4.32% on BSE, with market cap of Rs 13,436.05 crore. The housing finance stock has dropped by at least 6.2% after hitting an intraday low of Rs 159 apiece on BSE in the early trade.

Sammaan Capital Open Offer:

As per the regulatory filing, the Abu Dhabi-based company entered into an agreement to invest USD 1 billion (Rs 8,850 crore) in Sammaan Capital Limited.

IHC has made an open offer to acquire at least 34,17,54,286 equity shares of Sammaan Capital with a face value of Rs 2 each, representing 26% of the Expanded Voting Share Capital from public shareholders. This open offer is worth Rs 4,750.38 crore. The offer price is at Rs 139 per share, which is currently at a discount by 18.01% from October 2nd's closing price of Rs 169.55. The entire open offer will be paid in cash.

Apart from this, IHC will buy warrants in Sammaan Capital in two tranches. The first tranche is of acquiring 8,68,92,966 warrants, each carrying a right to subscribe to 1 (one) Equity Share, at a price of Rs 139.

The second tranche will include acquisition of 21,97,97,569 warrants, each carrying a right to subscribe to 1 (one) Equity Share, at a price of Rs 139.

Syed Basar Shueb, CEO of IHC, commented: "India represents a core strategic market for us, and its long-term growth fundamentals are compelling. We have been impressed by Sammaan Capital's leadership in enabling home ownership and empowering small businesses across the country. This USD 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."

Meanwhile, Gagan Banga, Managing Director and CEO of Sammaan Capital, said "Sammaan Capital's journey has been defined by resilience, adaptability, and an unwavering commitment to creating stakeholder value. We are proud to join the IHC family and contribute to its expansive global vision. Under IHC's parentage, we will continue to focus on providing affordable housing finance and mid-market mortgage solutions to our customers, leveraging IHC's strong technology capabilities. The alignment of aspirations between IHC and Sammaan Capital is deeply encouraging, and we are confident that our experienced and dynamic leadership will propel the next phase of growth with renewed energy and purpose."

The transaction is subject to regulatory approvals from the Reserve Bank of India and the Competition Commission of India, as well as other customary closing conditions.

About Sammaan Capital:

Sammaan Capital Limited, publicly listed on the Bombay Stock Exchange and National Stock Exchange of India, is among the country's largest non-banking financial companies (NBFC), focused primarily on mortgage lending. The company operates through 220 branches in over 150 towns and cities, with more than 4,430 employees, playing a vital role in India's financial inclusion and growth.