Avenir Investment RSC's Bold USD 1 Billion Move into India's Non-Bank Financial Sector

Avenir Investment RSC, linked to International Holding Company, is set to acquire a 43.46% stake in Sammaan Capital, formerly Indiabulls Housing Finance, for USD 1 billion. This strategic move marks IHC's entry into India's financial services sector, aiming to spur growth and enhance credit ratings.

Avenir Investment RSC, affiliated with International Holding Company in Abu Dhabi, has committed to acquiring a 43.46% stake in Indian non-bank lender Sammaan Capital for USD 1 billion, according to an announcement on Thursday.

Formerly recognized as Indiabulls Housing Finance, Sammaan Capital is raising funds by issuing preferential shares to Avenir, pending necessary approvals as detailed in an exchange filing. This deal represents a notable entry for IHC into the Indian financial service landscape through the most substantial primary capital infusion in an Indian non-bank financial company to date.

The transaction promises significant growth opportunities for Sammaan Capital with enhanced access to long-term patient capital and improved credit ratings, as stated. The acquisition includes purchasing over 63 crore shares through preferential allotments, warrants, and facilitated open offers.

(With inputs from agencies.)