The International Holding Company announced on Tuesday that it has secured all regulatory approvals necessary to acquire approximately 41.5% of Suman Capital Limited, valued at nearly one billion dollars, after accounting for all convertible instruments.
The acquisition will take place in several phases; approximately 26.9% has already been acquired to date, with the remaining portion to be completed through financial instruments in compliance with regulations in India. A mandatory tender offer will also be conducted to acquire up to 26% of the total capital from public shareholders, in accordance with Indian securities regulations.
Upon completion of all phases of the deal, the International Holding Company will become a significant shareholder in Suman Capital, gaining the rights to appoint a majority of the board members and play an active role in guiding the overall strategy of the company.
Suman Capital Limited, which is listed on the Bombay Stock Exchange and the National Stock Exchange of India, is one of the largest non-banking financial companies in India, primarily focusing on mortgage loans. The company operates through 220 branches across more than 150 cities and towns, employing over 4,430 people, thus enhancing its crucial role in promoting financial inclusion and economic growth in India.
Expansion
Said Bazr Shuaib, CEO of the International Holding Company: “This achievement is a significant milestone in our long-term strategy for expansion within the financial services sector in India. By becoming a major shareholder in Suman Capital, we reaffirm our commitment to delivering sustainable long-term value and supporting a key platform that plays a vital role in enabling homeownership and enhancing access to credit. We see substantial opportunities to enhance the company’s capabilities, including leveraging artificial intelligence technologies and actively contributing to the development of the financial ecosystem in India.”
Jagan Banga, Managing Director and CEO of Suman Capital Limited, commented: “Today marks an important new chapter in the journey of Suman Capital. The entry of the International Holding Company as a major shareholder reinforces the alignment of our long-term vision and provides the capital support necessary to elevate our growth trajectory. We are confident that this partnership will empower us to expand our platform, enhance our reach, and continue delivering sustainable value to our clients and all stakeholders.”
Suman Capital is now part of Godan Financial, the investment arm of the International Holding Company, which is newly established in the financial services sector, bolstering the group’s financial service platform and supporting its growth aspirations in this field.
This investment is anticipated to strengthen Suman Capital’s balance sheet, support its next phase of growth, and enhance its ability to offer innovative lending solutions targeting underprivileged segments with limited access to financing.
This investment represents a significant milestone in the International Holding Company’s strategic expansion into the Indian market and underscores its long-term commitment to deploying capital and its partnership-based approach to investing in promising growth markets. India is one of the fastest-growing major economies worldwide, with the non-banking financial sector playing a crucial role in bridging the gap between traditional banking services and the increasing demand for credit. As regulatory oversight from the Reserve Bank of India intensifies, these companies are well-positioned to contribute to enhancing financial inclusion and sustaining economic growth in India.