Foreign deal worth ₹8,850 crore! Find out who is buying an Indian company, open offer launched

Abu Dhabi’s International Holding Company (IHC) has completed the largest foreign capital deal in India’s NBFC sector to date. IHC has acquired a 41.2% stake in Sammaan Capital (formerly Indiabulls HFC) at ₹139 per share. The company is also launching an open offer for approximately 340 million additional shares, or 26% equity. If the offer is fully subscribed, IHC’s stake will increase to 63.4%. The deal is valued at approximately ₹8,850 crore.

What is the deal?

IHC has decided to acquire a 41.2% stake in Sammaan Capital through shares and warrants on the exchange. The price per share has been fixed at ₹139. Following this investment, the company has also launched an open offer for approximately 340 million shares, representing 26% of its equity. The open offer price has also been set at ₹139 per share.

Total Deal Value

The value of the entire deal is estimated to be approximately ₹8,850 crore (approximately $1 billion). This is reported to be the largest primary capital inflow deal in India’s NBFC sector to date.

Stake and Control

According to SEBI regulations, when a company acquires more than 25% stake, it is required to make a mandatory open offer to other shareholders. IHC has launched this offer under this regulation. If fully subscribed, IHC’s stake will increase from 41.2% to 63.4%. This means the company will gain promoter control of Sammaan Capital and a majority on the board.

Meaning for investors

Interestingly, the open offer price of ₹139 represents a discount of approximately 18% to Sammaan Capital’s Wednesday closing price. This could create negative sentiment for investors already holding shares in the short term. However, in the long term, IHC’s control will strengthen the company’s funding strength and growth plans.