Smallcap stock in focus after Abu Dhabi based firm to acquire 43.46% stake for $1 Billion

Synopsis: The Competition Commission of India has approved Abu Dhabi-based International Holding Company’s $1 billion bid to acquire a 43.46% stake in Sammaan Capital. Here’s what this news means for investors.

A leading non-banking financial company has secured a crucial regulatory approval that paves the way for significant foreign investment. The Competition Commission of India has greenlit Abu Dhabi-based International Holding Company’s ambitious proposal to acquire a Major stake worth $1 billion in this NBFC, marking a landmark cross-border deal in India’s financial sector.

Sammaan Capital Limited’s stock, with a market capitalisation of Rs. 11,912 crores, rose to Rs. 147.39, hitting a high of up to 4.09 percent from its previous closing price of Rs. 141.59. However, the stock over the past year has given a negative return of 13.3 percent.

CCI Approval

The Competition Commission of India (CCI) has approved a major investment deal between Abu Dhabi-based International Holding Company (IHC) and Sammaan Capital Limited. IHC will acquire a controlling stake in this non-banking financial company through its investment arm, Avenir Investment RSC Ltd. The transaction was first announced in October 2025 and involves a massive investment of $1 billion, which is approximately ₹8,850 crore. This marks the largest-ever primary investment by a single international investor in an Indian NBFC.

The deal involves Sammaan Capital issuing new shares directly to IHC through a preferential allotment process. IHC will acquire a 43.46% stake in the company, making it the new promoter. The investment will be made in multiple tranches: the first involves issuing 33 crore shares at ₹139 per share (an 18% discount from market price) to raise ₹4,587 crore. The remaining amount will be raised through two rounds of warrants, bringing in ₹1,207 crore and ₹3,055 crore respectively.

This transaction will significantly change Sammaan Capital’s ownership structure. Existing shareholders will see their collective stake drop sharply from 98.25% to 57.74% due to the fresh share issuance. The deal will also trigger a mandatory open offer under regulatory guidelines, requiring IHC to acquire an additional 26% stake from public shareholders.

While the CCI has cleared the deal, several regulatory approvals are still pending. The Securities and Exchange Board of India (SEBI) must approve the mandatory open offer, and the Reserve Bank of India (RBI) needs to grant its clearance as well.

Q2 Financial Highlights 

The company’s Q2FY26 revenue stood at Rs 2,251 crore, declining 7.1% YoY from Rs. 2,422 crore in Q2FY25 and dropping 6.2% QoQ from Rs. 2,400 crore in Q1FY26. Despite the revenue contraction, profitability showed remarkable resilience with Q2FY26 profit at Rs. 308 crore compared to a massive loss of Rs. 2,761 crore in Q2FY25 marking a turnaround of over Rs 3,000 crore YoY.

The loss was mainly attributed to a one-time provision of approximately ₹4,000 crore related to fair value measurements on overdue assets in the company’s legacy loan book. This provision was part of a strategic cleanup effort to address and resolve potential credit risks from older, non-performing loans acquired from its subsidiary, Sammaan Finserv. By booking this provision, the company aimed to eliminate future credit costs from the legacy segment and strengthen its balance sheet for future growth.

The company’s current P/E ratio of 9.39 trades at a significant 45% discount to the industry average of 17, suggesting potential undervaluation or market concerns about growth sustainability. The valuation gap versus industry peers could present an opportunity if the company can stabilize revenues and maintain profit margins going forward.

About the Company

Sammaan Capital, formerly known as Indiabulls Housing Finance, is an RBI-registered upper-layer NBFC providing retail and wholesale loans, MSME financing, lease rental discounting, asset management, and insurance distribution services. IHC is a prominent Abu Dhabi-based public shareholding company managing a diversified portfolio across finance, healthcare, real estate, renewable energy, manufacturing, and retail sectors.​

Written By Fazal Ul Vahab C H

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