Sammaan Capital Ltd has received a major capital infusion from Middle East-based investment giant International Holding Company (IHC), which is set to acquire a controlling stake in the non-banking financial company through a multi-stage transaction valued at about $1 billion.
In a stock exchange filing, the company said IHC, through its affiliate Avenir Investment RSC Limited, will become the promoter of Sammaan Capital by acquiring a 41.5 per cent stake via a preferential allotment of equity shares and warrants.
Sammaan Capital has already received an initial tranche of ₹5,652 crore, equivalent to about $600 million, towards the allotment. An additional ₹3,198 crore, or around $338 million, is expected to be infused over the next 18 months upon conversion of warrants into fully paid equity shares.
According to the exchange filing, upon completion of an open offer (announced at ₹139 per fully paid equity share), and assuming full uptake in the open offer, IHC, through Avenir will hold 63.3 per cent stake in Sammaan Capital.
The company noted in its filing that all requisite regulatory approvals have been received for the acquisition of approximately 41.5 per cent stake on a fully diluted basis. So far, around 26.9 per cent stake has already been acquired, with the remaining portion to be completed through warrant conversion in phases over the next 18 months.
Sammaan Capital added that the partnership with IHC will support its long-term growth ambitions and strengthen its position among well-capitalised financial institutions in the country.