Abu Dhabi’s International Holding Company (IHC) has sought approval from the Competition Commission of India (CCI) for its proposed $1 billion investment to acquire a 43.46% stake in Sammaan Capital, a non-banking financial services firm. The move follows shareholder approval and marks one of the largest foreign capital infusions in India’s NBFC sector.
Deal Overview
The investment will be made through Avenir Investment RSC Ltd, an IHC affiliate, which will subscribe to preferential shares issued by Sammaan Capital.
- Investor: International Holding Company (via Avenir Investment RSC Ltd)
- Target Company: Sammaan Capital
- Stake Acquired: 43.46%
- Deal Value: $1 billion
This transaction positions IHC as a significant strategic investor in India’s fast-growing financial services space.
Regulatory Clearance
IHC and Sammaan Capital have jointly filed for approval with the Competition Commission of India (CCI). The regulator will assess whether the acquisition could impact market concentration or competition dynamics.
Both parties have clarified that the transaction will not adversely affect competition in any relevant market segment, as Sammaan Capital primarily operates in diversified lending and financial inclusion segments.
Strategic Rationale and Future Plans
The proposed investment aligns with IHC’s broader strategy to expand its presence in India’s financial ecosystem. Through this partnership:
- IHC plans to leverage Sammaan Capital’s nationwide distribution network.
- The companies aim to integrate AI-driven tools to improve credit assessment and lending efficiency.
- The collaboration will focus on broadening credit access for underserved and emerging customer segments.
Outlook
Once approved, the acquisition will pave the way for enhanced capital strength, digital integration, and product innovation within Sammaan Capital. The deal underscores IHC’s growing interest in India’s financial services sector, reinforcing the country’s position as a key destination for global investors.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.