Sammaan Capital Limited, formerly known as Indiabulls Housing Finance, has announced a significant development that could reshape its future trajectory. The company has secured a substantial investment of INR 8,850 crore from International Holding Company (IHC), marking a pivotal moment in its growth strategy.

Investment Details and Strategic Implications

International Holding Company, through its subsidiary Avenir Investment RSC Limited, is set to acquire a 41.2% stake in Sammaan Capital on a fully diluted basis at INR 139.00 per share. This move could potentially increase to a 63.4% stake, as IHC has also made an open offer to acquire an additional 26% of the company.

The investment has already shown positive impacts:

• Borrowing costs have decreased, with Sammaan Capital raising a $450 million dollar bond at 150 basis points lower than previous issuances.
• Moody's has placed the company on review for a possible rating upgrade.

Financial Performance Highlights

Sammaan Capital's Q2 results reflect a strong financial position:

This profit marks a significant turnaround from a loss of INR 2,761.00 crore in the same quarter of the previous year.

Expansion Plans and Future Outlook

With the infusion of new capital, Sammaan Capital is poised for substantial growth:

• Plans to increase annual disbursals from INR 15,000.00 crore to INR 35,000.00 crore in the next fiscal year.
• Focus on expanding the retail mortgage business while exploring additional product lines.
• Aim to grow the branch network three to fourfold and increase workforce fourfold.

Regulatory Developments

Recent regulatory changes have positively impacted Sammaan Capital's asset-light strategy:

• New co-lending regulations allow for partnerships beyond just banks, including all India financial institutions.
• Minimum retention ratio for co-lending reduced from 20% to 10%, potentially improving ROA.

Management's Perspective

Gagan Banga, Managing Director and CEO, emphasized the company's transformation:

"We are emerging out of a peculiar situation, and we should be running like a normal company. Fiscal '27 and '28 would be sort of catch-up years in terms of the loan book, AUM, and disbursals."

Banga also highlighted the importance of the existing management team in this transition, stating, "This is sort of acqui-hire that they have done... The mandate to me is to keep my core team together and make sure that they stay together for the next few years because there is a lot of work which needs to get done."

As Sammaan Capital embarks on this new chapter, the management remains focused on growth, technological advancements, and expanding its product suite, while maintaining its core strength in the mortgage business. The coming quarters will be crucial as the company integrates the new investment and refines its strategy for the future.

Sammaan Capital Limited, formerly known as Indiabulls Housing Finance Limited, has reported a significant increase in profit for the quarter ended September 30, 2025, along with the approval of a substantial preferential issue. The company's financial results and strategic moves indicate a period of growth and capital strengthening.

Financial Performance

Sammaan Capital reported a standalone profit of Rs 308 crore for Q2 FY26, marking a substantial rise from Rs 109 crore in the same period last year. This represents a year-on-year growth of approximately 182.57%. The company's total income for the quarter increased marginally to Rs 2,089 crore from Rs 2,068 crore in the previous year.

Key Financial Metrics

The company's asset quality showed improvement, with Gross Non-Performing Assets (GNPA) decreasing to 1.40% from 2.40% year-on-year, and Net Non-Performing Assets (NNPA) reducing to 0.80% from 1.40%.

Strategic Developments

Preferential Issue Approval

The board of Sammaan Capital has approved a preferential issue worth approximately Rs 8,850 crore to Avenir Investment RSC Ltd. This strategic move is subject to shareholder and regulatory approvals. Shareholders have already approved this resolution at an extraordinary general meeting held on October 29, 2025.

Capital Raising

During the quarter, Sammaan Capital raised $300 million through Senior Secured Social Bonds. Additionally, the company raised an extra $450 million post-quarter, further strengthening its financial position.

Regulatory Classification

The Reserve Bank of India has categorized Sammaan Capital as an Upper Layer NBFC, reflecting its significant position in the financial sector.

Business Focus

Sammaan Capital continues to primarily engage in finance and mortgage-backed lending activities. The company's growth strategy appears to be focused on strengthening its capital base and expanding its lending operations.

Future Outlook

With the approval of the preferential issue and successful bond raises, Sammaan Capital is positioning itself for potential growth in its core lending business. The improved asset quality and capital infusion may support the company's expansion plans in the coming quarters.

Investors and stakeholders will be watching closely to see how Sammaan Capital leverages this capital infusion to drive growth and maintain its improved asset quality in the competitive finance and mortgage lending sector.