Sammaan Capital , formerly known as Indiabulls Housing Finance Limited, has announced an ambitious fundraising plan following a board meeting. The company's board has greenlit proposals to raise up to Rs 40,000.00 crore through various debt instruments, signaling a significant move to bolster its financial position and support future growth initiatives.

Fundraising Details

The board's approval encompasses two major components:

1. Non-Convertible Debentures (NCDs) and Bonds: The company has received authorization to raise up to Rs 30,000.00 crore through secured and/or unsecured redeemable non-convertible debentures (NCDs) and bonds. This issuance will be conducted on a private placement basis and will be executed in multiple tranches over the course of one year, subject to shareholder approval at the upcoming Annual General Meeting (AGM).

2. Additional Debt Instruments: Sammaan Capital has also secured approval to raise up to Rs 10,000.00 crore through various debt instruments. These include debentures, bonds, external commercial borrowings (ECBs), and other non-convertible securities. The company plans to raise these funds through public offers or private placements, either in domestic or international markets.

Implementation and Oversight

The board has empowered its existing Securities Issuance and Investment Committee to oversee the fundraising process. This committee will be responsible for evaluating various options and implementing the fundraising strategy in a manner most beneficial to the company. Key decisions, including the type of offering, terms and conditions, security arrangements, issue size, pricing, and timing, will fall under the committee's purview.

Corporate Governance Updates

In addition to the fundraising approvals, the board meeting also addressed several corporate governance matters:

• Appointment of Secretarial Auditors: M/s Neelam Gupta & Associates, a practicing company secretarial firm, has been appointed as the Secretarial Auditors for a five-year term, subject to shareholder approval.

• Organizational Structure: The position of Vice-Chairman has been abolished to reinforce the company's commitment to collaborative governance and equality at the board level. Mr. Gagan Banga will continue his role as Managing Director and CEO.

• Dividend Update: Due to a consolidated loss, despite standalone profits, the board has decided not to recommend a final dividend, adhering to RBI guidelines for NBFCs.

Market Response

The stock market's initial reaction to these developments was slightly negative, with Sammaan Capital's shares closing 0.54% lower at Rs 138.61 on the National Stock Exchange (NSE). However, it's worth noting that the stock has seen a significant uptick of nearly 18% following its inclusion in the futures and options segment.

Annual General Meeting

Sammaan Capital has scheduled its Twentieth Annual General Meeting to be held virtually at 11:00 A.M. (IST). The Register of Members and Share Transfer Books will be closed for four days leading up to the AGM.

As Sammaan Capital embarks on this substantial fundraising initiative, investors and market watchers will be keenly observing how the company utilizes these funds to drive growth and strengthen its market position in the competitive financial services sector.

Sammaan Capital , formerly known as Indiabulls Housing Finance, witnessed a significant boost in its stock performance and made strides in strengthening its financial position. The company's shares experienced a notable uptick and it successfully raised funds through a bond issuance.

Stock Performance and F&O Inclusion

Sammaan Capital's shares surged by 7% on Friday following the company's inclusion in the Futures & Options (F&O) segment. The stock closed 6.55% higher at ₹125.70, reflecting investor optimism about the company's prospects. However, it's worth noting that despite this recent gain, the shares remain down 18% year-to-date, indicating a challenging market environment.

Company Transformation

Since the IL&FS crisis, Sammaan Capital has undergone a significant transformation. The company has been focusing on improving its financial health and operational efficiency:

• Assets Under Management (AUM): The company's AUM declined from ₹1.2 lakh crore in FY18 to ₹62,300 crore in FY25, reflecting a strategic shift in its business model.
• Debt-to-Equity Ratio: There has been a substantial improvement in the debt-to-equity ratio, which decreased from 8.2 times to 1.9 times over the same period, indicating stronger financial stability.
• Growth AUM: The proportion of growth AUM in the total loan book increased to 64% from 60% in the previous quarter, suggesting a focus on expanding its core lending activities.

Management Outlook

The management of Sammaan Capital has provided guidance on key financial metrics:

• Credit Costs: Expected to remain around 1% annually.
• Leverage: Anticipated to stay between 2-2.5 times.

These projections indicate the company's commitment to maintaining a balanced approach to risk and growth.

Recent Bond Issuance

In a recent development, Sammaan Capital successfully raised US$300 million through the allotment of Senior Secured Social Bonds. Key details of the bond issuance include:

• Bond Type: 8.95% Senior Secured Social Bonds due 2028
• Issuance Structure:
  • US$16,700,000 under Rule 144A
  • US$283,300,000 under Regulation S
• Listing: The bonds are expected to be listed on the Global Securities Market of the India International Exchange (IFSC) Limited.

This successful bond issuance demonstrates the company's ability to access international capital markets and potentially supports its growth initiatives.

Conclusion

Sammaan Capital's recent stock performance, driven by its inclusion in the F&O segment, along with its successful bond issuance, highlights the company's evolving market position. While the company has faced challenges, as evidenced by the year-to-date stock decline, its efforts to transform its business model and strengthen its financial position are noteworthy. Investors and market observers will likely continue to monitor Sammaan Capital's progress as it navigates the dynamic financial services landscape.