Abu Dhabi's IHC buys $1bn stake in India's Sammaan Capital

IHC has agreed to acquire a 43.5% stake in one of India's top non-banking financial company

International Holding Company headquarters in Abu Dhabi. Photo: IHC

International Holding Company (IHC) on Thursday agreed to acquire a 43.5 per cent stake in India’s Sammaan Capital in a $1 billion deal as the Abu Dhabi conglomerate continues to diversify its portfolio of assets.

IHC, one of the most valuable listed companies in the Middle East, said the investment underscores the company's commitment to the long-term potential of India's financial sector.

“This $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,” IHC chief executive Syed Shueb said.

Listed on the Bombay Stock Exchange and the National Stock Exchange of India, Sammaan Capital is one of India's largest non-banking financial companies. It operates through 220 branches in more than 150 towns and cities of Asia's third-largest and one of the fastest growing economies.

Deal Structure

Samman will issue 330 million shares and 306.7 million convertible warrants to IHC affiliate Avenir Investment at 139 rupees ($1.5681) each. Avenir will be classified as a promoter and will take control of the company after the deal.

The transaction, however, is subject to regulatory and shareholder approvals.

“Joining the IHC Group opens new horizons for us,” said Gagan Banga, Samman Capital chief executive and managing director.

“The alignment in our aspirations is deeply encouraging, and we believe our experienced and dynamic team will drive the next phase of growth with renewed energy and purpose.”

In August, IHC reported Dh10.8 billion in group net profit for the first six-month of year, according to a filing to the Abu Dhabi Securities Exchange.

Revenue for the first six-months of this year climbed to Dh54.7 billion, a 31.1 per cent increase from the same period last year, it said at the time.

Acquisition spree

IHC has been on an acquisition spree as it aims to double its asset base to Dh800 billion ($218 billion) by 2030.

The company in May announced the launch of RIQ, a $1 billion global reinsurance platform, which it developed in partnership with BlackRock, the world's largest asset manager.

IHC this year also announced the acquisition of Maseera, a microfinance platform in Egypt, with a commitment to invest $1 billion over the next years to support its expansion.

It also established a new holding company 2PointZero with more than $27 billion in assets in January last year, and pioneered a US dirham-backed stablecoin in collaboration with ADQ and First Abu Dhabi Bank.

IHC is chaired by Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi and National Security Adviser, and has previously shown interest in expanding its portfolio assets in India and fast-growing economies in Central Asia, as well as the US.

Mr Shueb has previously said India is one of the major markets for IHC, and the company is expected to invest up to $110 billion to capitalise on growth opportunities. IHC already has a forged a partnership with India's Adani Group.

The company is also an investor in Indian snack-maker Haldiram's along with Alpha Wave Capital, PwC.

It also has $60 billion worth of investments in the US, including in companies like SpaceX and Ardent Healthcare.

IHC intends to increase its investment in the US by an additional $40-$50 billion in the next decade, Mr Shueb told The National in May.

Data centres, renewable energy, nuclear and infrastructure projects are all priority sectors of investment, he said at the time.

The Abu Dhabi-based company is a major part of the emirate's efforts to diversity its non-oil business sectors.

Some of the companies under its umbrella include Abu Dhabi's largest listed developer Aldar Properties, Modon Properties, Adnec Group, Presight, Al Seer Marine and NMDC Group.