Sammaan Capital is set to enhance its focus on affordable housing loans following a $1 billion investment from Abu Dhabi’s International Holding Company (IHC), as stated by CEO Gagan Banga in an interview with Reuters.
With affordable housing being a crucial growth sector, Banga mentioned that the IHC’s investment will provide “even greater momentum” as Sammaan aims for an assets under management (AUM) target of 1 trillion Indian rupees (approximately $11.27 billion) by the financial year 2027.
To facilitate this expansion, Sammaan plans to establish around 10 new branches each month, predominantly in tier-4 and tier-5 cities and outlying areas of larger metropolitan regions. The company anticipates launching an additional 60 to 70 branches within the next six to nine months, according to Banga.
Non-banking financial companies have increasingly targeted affordable housing due to rising demand, government initiatives promoting low-cost housing, and decreased competition with big banks.
Earlier this month, IHC confirmed its acquisition of a controlling stake in Sammaan, reinforcing its investment in India’s rapidly expanding housing finance sector.
Banga revealed that the initial tranche of investment will primarily support the company’s core offerings: home loans and loans against property. Future rounds may also include new, commercially viable products such as gold loans and personal loans tailored for lower- to middle-income customers.
Sammaan, previously known as Indiabulls Housing Finance, remains open to acquisitions in the longer term while focusing on organic growth for the time being.
Once one of India’s largest housing finance companies, Indiabulls faced difficulties starting in 2018 due to a liquidity crisis triggered by the collapse of Infrastructure lender IL&FS, which led to significant financial strain.
Please note that after rebranding to Sammaan Capital in July 2024, the recent investment from IHC represents a significant boost for the firm, which aims to reestablish itself among India’s top 3-5 non-banking financial companies by the financial year 2030, as stated by Banga.
“With the experienced management team, a solid distribution network, and the capabilities provided by IHC’s capital and technology, we are optimistic about our ability to rejoin that elite group,” he concluded.
