- RBI approved Avenir's acquisition of controlling stake in Sammaan Capital Ltd
- Avenir will invest Rs 8,850 crore through preferential issue and warrants
- Avenir may raise stake to 63.36% via an open offer in Sammaan Capital
The Reserve Bank of India approved the acquisition of controlling stake in Sammaan Capital Ltd. by Avenir Investment RSC Ltd., an affiliate of Abu Dhabi-based International Holding Company. The RBI has also allowed the company's request for waiver of the public notice period and indirect change of control of wholly owned subsidiary Sammaan Finserve Ltd., according to an exchange filing late Tuesday.
As part of the deal signed in October last year, Avenir will invest Rs 8,850 crore by way of preferential issue in the non-banking financial company to gain a shareholding of nearly 41.23%. Over 33 crore shares will be issued to the investor at Rs 139 apiece in order to raise Rs 4,587 crore, while the rest will be through two tranches of warrants.
Avenir will then launch an open offer which could raise its stake to 63.36% in Sammaan Capital, formerly known as Indiabulls Housing Finance.
Following RBI clearance, Sammaan Capital and Avenir are in "active engagement" with the Securities and Exchange Board of India to ensure expeditious receipt of approval for the deal for timely completion, the filing said. The Competition Commission of India gave its nod in December.
Sammaan Capital share price ended 6.6% higher at Rs 138.51 on the NSE, ahead of the announcement, compared to a 1.8% advance in the benchmark Nifty 50. The stock is up 23% in the last 12 months but down 3.5% on a year-to-date basis.
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