Abu Dhabi Fund to Buy 41% Stake in NBFC Sammaan for $1 Billion
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International Holding Company of Abu Dhabi announces the largest foreign investment in India’s NBFC sector, acquiring 41.2% stake in Sammaan Capital.
Mumbai : October 3, 2025
In one of the most significant cross-border investments in India’s financial sector, Abu Dhabi’s International Holding Company (IHC) has announced that it will acquire a 41.2% stake in Sammaan Capital (formerly Indiabulls Housing) for ₹8,850 crore ($1 billion). The transaction is being hailed as the largest foreign investment in India’s NBFC space, underscoring growing global investor confidence in India’s non-banking financial company (NBFC) sector.
The deal, which includes a preferential allotment of equity and warrants at ₹139 per share (against Wednesday’s closing price of ₹170), is expected to reshape the NBFC landscape. Following regulatory approvals, IHC will be classified as a promoter and will secure a majority representation on Sammaan’s board.
Key Details of the Transaction
- Investment Value: $1 billion (₹8,850 crore)
- Stake Acquired: 41.2% in Sammaan Capital
- Price: ₹139 per share (preferential allotment of equity + warrants)
- Mandatory Open Offer: IHC will launch a mandatory open offer for an additional 26% stake, potentially increasing its total holding to 63.4%.
- Promoter Classification: Post-transaction, IHC will become the promoter of Sammaan Capital.
This investment marks a pivotal moment for both Sammaan Capital and the broader NBFC sector in India, signaling fresh momentum in a market that has witnessed turbulence in recent years.
About Sammaan Capital
Sammaan Capital, originally Indiabulls Financial Services, was founded in the early 2000s by IIT-Delhi alumni Sameer Gehlaut, Rajiv Rattan, and Saurabh Mittal. Initially focused on stockbroking, the firm quickly diversified into housing finance and mortgage lending, becoming one of India’s largest NBFCs.
The company was listed in 2004 and became a household name in affordable housing finance. Over time, however, it underwent significant changes in ownership:
- Promoter Sameer Gehlaut gradually reduced his stake from 22% to under 5%.
- Major global investors like Blackstone and ADIA took significant positions.
- By March 2022, Gehlaut exited the board, leaving the company fully professionalized.
Now, with IHC stepping in, Sammaan is expected to leverage global expertise, capital infusion, and technological synergies to expand its footprint.
Why This Deal Matters: Largest Foreign Investment in NBFCs
The acquisition represents the largest-ever foreign investment in India’s NBFC sector, which has historically been dominated by domestic players. Non-banking financial companies are critical for India’s credit ecosystem, especially in housing finance, mid-market lending, and SME financing.
Over the past decade, NBFCs have faced challenges including liquidity crises, asset quality stress, and stricter regulatory oversight. A $1 billion infusion not only strengthens Sammaan Capital’s balance sheet but also sends a strong signal to global investors about India’s financial stability.
IHC’s Strategic Move
The International Holding Company (IHC) is a diversified global investment firm with interests in technology, healthcare, energy, and finance. By entering India’s NBFC sector, IHC is positioning itself to capture long-term growth opportunities in one of the world’s fastest-growing credit markets.
According to IHC, the focus will be on:
- Affordable housing finance
- Mid-market mortgage solutions
- Leveraging global expertise in risk management and digital transformation
This move aligns with India’s economic priorities of expanding financial inclusion and housing affordability.
Impact on India’s NBFC Sector
The deal is expected to have a ripple effect across the NBFC industry:
- Boost to Investor Confidence: The investment validates the resilience of Indian NBFCs post the IL&FS and DHFL crises.
- Capital Infusion: Fresh capital will allow Sammaan to expand its loan book and tap underserved markets.
- Competitive Benchmark: Other NBFCs may seek similar foreign partnerships or capital injections.
- Policy Implications: The RBI and SEBI are likely to view this deal as a vote of confidence in regulatory reforms that have stabilized the sector.
Market Reaction and Outlook
Shares of Sammaan Capital surged after the announcement, with analysts noting that the preferential allotment at ₹139 represents a deep discount compared to the market price of ₹170, suggesting strong long-term confidence from IHC.
Experts believe that IHC’s entry could pave the way for:
- Expansion into digital lending platforms.
- Broader product diversification beyond housing finance.
- Improved governance and risk management practices with global oversight.
Voices from the Industry
Gagan Banga, MD & CEO of Sammaan Capital, said:
“Under IHC’s parentage, we will continue to focus on providing affordable housing finance and mid-market mortgage solutions, while leveraging IHC’s global technology capabilities. This partnership marks a new era for Sammaan and for India’s NBFC sector.”
Market analysts suggest that the deal could catalyze a new wave of consolidation in the NBFC sector, where larger players backed by foreign capital strengthen their market share.
Challenges Ahead
While the investment is positive, challenges remain:
- Regulatory Approvals: The deal requires clearance from the Reserve Bank of India and other statutory bodies.
- Integration Risks: Aligning IHC’s global practices with Sammaan’s Indian operations may require careful execution.
- Market Risks: With interest rate fluctuations and evolving credit demand, NBFCs must remain resilient to shocks.
Nonetheless, industry experts agree that the strategic benefits outweigh the risks.
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