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.

Sammaan Capital Limited, formerly known as Indiabulls Housing Finance Limited, has successfully raised $300 million through the issuance of Senior Secured Social Bonds. This strategic move marks a significant financial milestone for the company in the debt capital markets.

Bond Details

The bonds, which carry an interest rate of 8.95%, are set to mature in 2028. They have been structured under two key regulations:

• Rule 144A of the U.S. Securities Act, 1933: $16.70 million
• Regulation S of the U.S. Securities Act, 1933: $283.30 million

Listing and Trading

The company has announced that these bonds are expected to be listed on the Global Securities Market of the India International Exchange (IFSC) Limited. This listing is anticipated to enhance the bonds' liquidity and tradability in the international market.

Company Background

Sammaan Capital Limited, operating under the CIN L65922DL2005PLC136029, has its corporate office in Gurgaon, Haryana, and its registered office in New Delhi. The company, which recently underwent a name change from Indiabulls Housing Finance Limited, continues to maintain its presence in the financial services sector.

Recent Financial Activities

In addition to this bond issuance, the company has been actively managing its existing debt obligations. Recent LODR data reveals that Sammaan Capital has been making timely interest payments on various Secured Redeemable Non-Convertible Debentures (NCDs) issued through public offerings. These NCDs have varying issue sizes and monthly interest payment schedules.

Market Impact

This successful bond issuance demonstrates Sammaan Capital's ability to attract significant international investment, potentially strengthening its financial position and supporting its future growth strategies. The social aspect of these bonds also aligns with the growing trend of socially responsible investing in the global financial markets.

As Sammaan Capital continues to evolve its financial strategies, this bond issuance represents a noteworthy development for investors and market watchers alike, signaling the company's ongoing efforts to diversify its funding sources and optimize its capital structure.