Sammaan Capital Share Price Surges 11% Following RBI Approval for IHC Stake Acquisition

Sammaan Capital Share Price Jumps 11% Amid RBI Approval

Key Highlights:

• Sammaan Capital's share price surged 11% in Wednesday's trading session after receiving approval from the Reserve Bank of India (RBI) for International Holding Company (IHC) to acquire a majority stake in the non-banking finance company (NBFC).
• Sammaan Capital's share price opened at ₹144.93 today, compared to the previous close of ₹138.51 on Tuesday, and rallied as much as 10.76% to ₹153.42 apiece.

Transaction Details:

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• Avenir Investment RSC, a subsidiary of IHC, plans to invest ₹8,850 crore via a preferential issue to acquire a 66.65% stake in Sammaan Capital.
• Avenir intends to hold around a 41.23% stake in Sammaan Capital, which could rise to 63.36% after the preferential issue and the open offer.

Regulatory Conditions:

• The RBI has imposed certain conditions for its approval, including a ban on Sammaan Capital raising public deposits and a requirement for Avenir to complete the share transfer within one year.
• Avenir must also obtain prior RBI approval to increase its stake to 26% or more if its shareholding falls below 26% after the transaction.

Company Updates:

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• The RBI has approved the appointment of IHC's nominee, Alwyn Dinesh Crasta, as a director on Sammaan Capital's board for a term of up to five years.

Share Price Trend:

• Sammaan Capital has remained volatile in the near term amid weak market sentiments, with a 8% gain in a week and a 4% fall in a month.
• The stock has delivered 35% returns in a year and 59.54% returns in three years, but has descended 22.19% in five years.