Sammaan Capital raises $150 million through QIP; Capital Group, Marshall Wace and BlackRock top investors

US-based investment firm Capital Group, London-based hedge fund Marshall Wace, and BlackRock, the world’s largest asset manager, emerged as key investors in the recently concluded qualified institutional placement (QIP) of mortgage lender Sammaan Capital, bankers involved in the transaction told ET.

The Mumbai-based housing finance company, formerly known as Indiabulls Housing Finance, successfully raised $150 million, or Rs 1,300 crore, through the QIP. The issue was oversubscribed more than twice, receiving bids amounting to $315 million, said bankers.

Following the allocation of the QIP shares, Capital Group will hold about 5% of the company. The top five institutional investors—Capital Group, Plutus, LIC, Vanguard, and Marshall Wace—now collectively hold around 21% of the company, replacing the erstwhile promoter, Sameer Gehlaut, who previously held a 21% stake.

Sameer Gehlaut has completely exited his holdings in the company, which has since rebranded itself as Sammaan Capital.

The company on Monday issued shares to eligible qualified institutional buyers at the issue price of Rs 150 per share. The company’s shares fell 7.5% to close at Rs 143.25 on Monday.

Shares of Sammaan Capital have gained 6% over the last six months, outperforming the Nifty index, which has declined by 6% during the same period.Including a rights issue of Rs 3,700 crore in 2024, Sammaan Capital has raised Rs 5,000 crore in equity over the last 12 months. Following a period of consolidation, the company is now back on a growth trajectory and focusing on expansion.Sammaan Capital is primarily focused on the affordable housing segment. In FY23, India’s residential property market boomed with the value of home sales reaching an all-time high of Rs. 3.47 lakh crore (US$ 42 billion), marking a robust 48% YoY increase. The volume of sales also exhibited a strong growth trajectory, with a 36% rise to 379,095 units sold. Real estate sector in India is expected to reach $ 1 trillion in market size by 2030, up from $ 200 billion in 2021 and contribute 13% to the country’s GDP by 2025.

The housing sector is experiencing secular growth across all price ranges, and experts are unanimous that this marks the beginning of strong and sustained demand in the sector. Key factors propelling this growth include a large, existing housing shortage; a young and expanding workforce; increasing urbanization; nuclearization of families; a rapidly growing economy, and rising incomes, all of which continue to support the demand for housing in India.