Abu Dhabi, October 2025 — UAE conglomerate International Holding Company (IHC) has signed an agreement to purchase a 43.5% stake in Indian non-banking financial institution Sammaan Capital for USD 1 billion.
What the Deal Involves
Stake and structure: Avenir Investment, the subsidiary of IHC, will acquire 330 million shares and 306.7 million convertible warrants in Sammaan Capital, priced at issue of ₹139 per security (shares or warrants). At closing, Avenir will be considered a promoter and will assume control.
Sammaan’s profile: Operations as an India-based non-banking financial company (NBFC) with 220-plus branches covering more than 150 cities and towns. Listed on the Bombay Stock Exchange and the National Stock Exchange of India.
Why It Matters: Strategic & Financial Implications
1. Cross-border finance & expansion
This investment is an indication of growing synergy between Gulf capital and Indian financial markets. IHC is placing big bets on India as a growth market. The deal gives IHC access not just to equity but to India’s small‐business lending and large retail markets.
2. Shoring up NBFC / Lending infrastructure
India NBFCs play a significant role in lending, especially in semi-urban/rural or underserved segments. IHC’s investment is co-timed with helping Sammaan scale up its lending, improve credit solutions, and harness technology (e.g., AI) to improve efficiencies.
3. Portfolio diversification & growth targets
IHC has gone on a spree of shopping. One of its publicly stated goals is to double its asset base to AED 800 billion (~USD 218 billion) in 2030. This investment is part of that goal, and underlines its diversification into finance, technology, infrastructure, etc., away from oil & gas.
4. Return potential
If Sammaan’s growth continues — particularly through scaling retail credit, geographic expansion, and AI/automation — the IHC return could be substantial. But this is subject to execution, regulatory risk, and credit performance.
Why This Is a Big Deal for Investors & the Regional Economy
Indicates UAE outward investment strategy: IHC is among the UAE players leading the way in outward flows of Rs. to growth markets. Such a transaction increases financial connectivity between India and the UAE.
Credit / NBFC space boost in India: Fresh capital from a large, diversified investor would lead to more competitive lending, lower costs, better service, and possibly innovation in fintech / AI for lending.
Raises more capital: Victory here may encourage other Gulf sovereign or quasi-sovereign investors to look for NBFCs or other financial instruments in India or other large emerging markets.
What does it mean for Investors?
Institutional investors: This is emerging market finance, credit growth, and financial services driven by technology. The risk-reward calculation holds if well-executed.
For the fintech & finance sectors: Anticipate more consolidation through mergers & acquisitions, possibly involving NBFCs or fintech firms in India.
For regulators & market watchers, this emphasizes the importance of stable regulatory climates, investor protection, and maintaining macroeconomic stability as a means to attract foreign investment.
Looking Forward
If Sammaan and IHC perform well, it can be a template for other border-crossing financial partnerships. With India set to drive its robust growth (population, digital adoption, financial inclusion), well-managed NBFCs with strong tech could be high-ROI bets. For IHC, the deal not only aligns with its 2030 asset growth strategy but also strategically positions it within the financial ecosystem of one of the world’s fastest-growing economies.
Source: thenationalnews.com
