Sammaan Capital shares fall 5% after six-day winning run on IHC deal; Stock in F&O ban

Shares of Sammaan Capital Ltd., which have gained as much as 25% in the last six trading sessions, fell over 5% in early trading on Friday, October 3, in reaction to the IHC deal news.

The non-bank lender informed the exchanges on Thursday evening, that Abu Dhabi-based IHC, one of the largest investment firms, has entered into a definitive agreement to acquire a controlling stake in Sammaan Capital.

IHC will be investing ₹8,850 crore or nearly $1 billion, through its affiliate Avenir Investment RSC Ltd., marking its foray into the financial services sector in India. The investment will give IHC a controlling 41.2% stake in Sammaan Capital, and also trigger a mandatory open offer for an additional 26% stake. IHC will also have the right to appoint majority of the board of directors.

This will be done through a preferential issue of 33 crore equity shares worth ₹4,587 crore and 39 crore warrants worth ₹4,262 crore. The allotment will be done at a price of ₹139 apiece, which is a 17% discount to Sammaan Capital's closing price on Wednesday.

Out of this, 8.68 crore warrants in the first tranche will have to be exercised within 26 weeks of the open offer ending, while 22 crore warrants of tranche 2 will have to be exercised within 18 months of the allotment of tranche 1.

This transaction marks the largest ever primary capital infusion by an investor in an Indian NBFC.

Based on the subscription of the open offer, IHC's stake post the investment will vary between 41.2% to 63.4%, on a fully diluted basis.

Sammaan Capital has also convened an extraordinary general meeting (EGM) on October 29 to seek shareholder approval for this preferential issue and amend the Articles of Association (AOA).

According to Sammaan Capital, the investment and promoter ownership of IHC will provide long-term capital and strong institutional ownership, bolster the company's ability to deliver strong, profitable growth, improve its credit rating and lower the cost of funds, augment its technology and AI capabilities, and strengthen governance support.

For financial year 2027, Sammaan Capital aims for its legacy book to have a single-digit contribution to the overall assets under management (AUM), compared to the current 37%. The aim is also to reach AUM of ₹1 lakh crore, compared to just over ₹62,000 crore at the end of the June quarter.

Shares of Sammaan Capital are currently trading 4.3% lower at ₹162.24, having ended another 5% higher on Wednesday, marking their sixth straight day of gains. The stock though, remains in the F&O ban, which means no new positions can be created in the stock.