Sammaan Capital Plans NCD Buyback Following IHC Investment

Sammaan Capital is moving to optimize its debt structure by repurchasing its Non-Convertible Debentures (NCDs) due by July 31, 2026. This initiative is supported by surplus liquidity and follows the recent acquisition of a 41.5% stake by IHC Group, establishing them as the new promoter.

Key Details of the Buyback

The company is utilizing its available cash to buy back the NCDs maturing in 2026. This action is a proactive step in managing its liabilities, particularly after the significant change in its ownership structure with IHC Group's increased stake.

Strategic Debt Management

This NCD buyback is designed to refine Sammaan Capital's debt profile. By reducing upcoming debt maturities, the company can better align its liabilities with its assets. The primary goals are to potentially lower its overall cost of borrowing and increase financial flexibility under the new leadership of IHC Group.

IHC Group's Strategic Investment

The recent acquisition by IHC Group signifies a major shift for Sammaan Capital. IHC, a large conglomerate based in Abu Dhabi, views India as a crucial growth market. The group's considerable financial strength and global network are expected to provide Sammaan Capital with enhanced backing and strategic guidance.

New Advantages Under IHC

With IHC Group's backing, Sammaan Capital anticipates several benefits:

• Access to IHC Group's substantial capital resources and international expertise.
• Increased financial flexibility to support future expansion plans.
• Potential for an improved credit profile, possibly leveraging UAE's sovereign credit rating.
• Opportunities to secure larger, longer-term capital sources.
• A reduced cost of borrowing.

Potential Hurdles

A key risk lies in how investors respond to the NCD repurchase offer. A low participation rate could hinder the company's debt optimization plans. Successfully integrating IHC's strategic vision and capital will also be vital for future success.

Industry Practice

While Sammaan Capital is undertaking this specific buyback, major financial firms like HDFC Ltd. and Bajaj Finance regularly employ sophisticated debt management. These companies often use tender offers for proactive liability management to optimize borrowing costs, which is a common practice in the financial services industry.

Key Figures and Dates

• IHC Group's market capitalization was AED 876 billion (USD 239 billion) as of Q1 FY26.
• The NCDs targeted for buyback mature by July 31, 2026.
• The offer for investors to participate in the buyback has an April 15, 2026, deadline.

Investor Outlook

Moving forward, investors will be watching several indicators:

• The level of investor participation in the NCD repurchase offer.
• Whether Sammaan Capital plans to extend buyback programs to longer maturities.
• Any official updates on Sammaan Capital's credit ratings and new funding cost benchmarks.
• How IHC Group's strategic integration impacts Sammaan Capital's operational growth.