The country’s competition regulator has cleared a major cross-border investment that could reshape one of India’s biggest non-banking financial companies. The Competition Commission of India has approved Abu Dhabi-based International Holding Company’s plan to buy a sizeable stake in Sammaan Capital, the lender formerly known as Indiabulls Housing Finance.
For months, the deal had been watched closely in financial circles. A $1 billion investment in an Indian NBFC is rare, more so when it comes from one of the Middle East’s most aggressive investment groups. On Tuesday, the final clearance arrived, setting the stage for the ownership change.
IHC will make the investment through Avenir Investment RSC, one of its affiliates. Avenir will pick up a 43.46 percent stake in Sammaan Capital. The transaction, valued at $1 billion or around Rs. 8,850 crore, will be executed through the issue of preferential shares. Essentially, the company will create fresh shares specifically for Avenir, which will become the new promoter once the process is completed.
For existing shareholders, this infusion brings heavy dilution. Their combined stake, which currently stands at 98.25 percent, will drop to 57.74 percent. Such dilution is expected when fresh capital flows into a stressed or restructuring financial company, but the long-term benefit lies in the capital cushion and credibility a deep-pocketed investor brings.
Sammaan Capital has spent the past few years rebuilding itself after a difficult phase for large housing finance companies. With the new capital injection, the company will be able to strengthen its balance sheet, expand lending operations and meet regulatory expectations. The approval is not just a green signal for ownership change; it also gives the lender a chance to reposition itself in a competitive market.
The regulator announced its decision in a short public note, stating that it had approved the acquisition of Sammaan Capital’s shares by Avenir. Such clearances are mandatory for large combinations because the competition authority ensures that no deal leads to unfair concentration of power or harms consumers. In this case, the regulator found no such concerns.
The stake sale was already backed by Sammaan Capital’s shareholders, who had voted in favour of it in October. The company had then notified the stock exchanges that the capital would be raised through preferential allotment after necessary regulatory approvals. With the CCI now on board, the process can move to final steps such as issuing the shares and updating ownership structures.
While this transaction grabbed most of the attention, the competition regulator also approved another significant deal the same day. This one involved French industrial powerhouse Schneider Electric. The CCI allowed Schneider Electric SE to buy stakes in two companies — Schneider Electric India Pvt Ltd and Schneider Electric JV Holdings 2 Pte Ltd — from MacRitchie Investments Pte Ltd, an investment arm of Singapore’s Temasek Holdings.
In simple terms, Schneider Electric is increasing its ownership in its India-focused entities. The transaction involves the purchase of a 35 percent stake in each of the two companies. Schneider will do this directly as well as through its subsidiary, Schneider Electric South East Asia (HQ) Pte Ltd.
MacRitchie, the seller, is a large investment holding company that owns stakes across global businesses. Its decision to exit these two Schneider entities aligns with its broader portfolio reshaping strategy.
Schneider Electric, on the other hand, has been steadily expanding its presence in India. The company works across energy management, automation systems, smart infrastructure, industrial software and power distribution. India is one of Schneider’s fastest-growing markets, and the buyout will give it tighter operational control as it continues to scale up local manufacturing and digital automation services.
The CCI, in its announcement, noted that both Schneider Electric India and SEJV2 are already under full operational control of Schneider. The deal simply strengthens the French company’s position. Since these acquisitions do not raise concerns of reduced competition, the regulator cleared them.
Both deals highlight a larger trend: global investors are showing renewed interest in Indian companies across finance, manufacturing and digital services. With steadier economic growth, strong policy visibility and expanding consumer demand, India remains a preferred destination for large corporations and sovereign-backed investors.
For Sammaan Capital, the IHC investment marks a turning point. The company, once a major name in housing finance, has been working to repair its image and balance sheet. The infusion of long-term capital from a heavyweight investor gives it the chance to scale without the constant worry of capital adequacy. More importantly, it signals confidence from an international player at a time when NBFCs face regulatory tightening and rising competition from banks and fintech companies.
IHC, meanwhile, has been steadily building a diverse portfolio across India through its subsidiaries and investment vehicles. From healthcare to energy to financial services, the group has taken strategic positions in multiple companies over the past few years. The Sammaan Capital deal extends that expansion.
Deals of this size require multiple layers of regulatory clearance, including from the RBI for change in control of an NBFC. With the CCI’s approval now secured, the remaining steps are expected to follow in due course.
Once completed, the investment will likely bring clarity to Sammaan Capital’s long-term strategy, capital structure and board composition. The company’s next chapter will depend on how it uses this billion-dollar lifeline to rebuild trust, revive growth and compete effectively in a crowded lending market.
With global investors stepping up their interest and regulators maintaining close oversight, India’s financial landscape is set for another round of consolidation and fresh expansion.
