This NBFC Company Slid 4% After A ₹8,850 Crore Deal; SEBI Analysts Flag More Pain Ahead
Synopsis
Analysts have noted that the stock appears overheated following its recent rally, with technical indicators suggesting a short-term correction despite strong momentum and high retail interest.
Shares of Sammaan Capital fell by more than 4% on Friday after the company announced that Abu Dhabi-based Avenir Investment, backed by IHC Capital Holding LLC, will acquire a 43.46% stake in the company. The investment, valued at ₹8,850 crore, will be made through a mix of shares and warrants priced at ₹139 per share.
According to an exchange filing, Avenir Investment RSC Ltd and IHC Capital Holding LLC will launch an open offer to acquire up to 34.17 crore fully paid-up equity shares, representing 26% of Sammaan Capital’s expanded voting share capital.
Sammaan Capital was earlier known as Indiabulls Housing Finance. The company rebranded and changed its name in July 2024. The stock has surged nearly 40% in the last six months.
Technical Outlook
SEBI-registered analyst Anupam Bajpai said Sammaan Capital’s latest candlestick closed fully outside the upper Bollinger band, indicating overextension. The relative strength index (RSI) was above 75, indicating that the stock is in the overbought zone.
Bajpai highlighted that prices are still well above their 20-day, 50-day and 200-day moving averages, pointing to a bullish sign, but also an indication of an overheated rally.
He also said that while the moving average convergence divergence (MACD) and commodity channel index (CCI) indicators are bullish, they have extreme readings which indicate that there is a possibility of a short-term correction.
Bajpai also noted weak fundamentals such as negative return on equity (ROE), low return on capital employed (ROCE), high leverage and recent losses. He said that the near-term outlook looks bearish with a probable pullback to the 20-day moving average.
Key Levels
SEBI-registered analyst Financial Sarthis said the stock has hit resistance and requires a close above ₹161.8 on the daily chart for any sustained upside.
The analyst said that once this level is crossed, targets of ₹180 and ₹200 could be achieved, while support is seen near ₹145.
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘extremely bullish’ amid ‘high’ message volume.
Sammaan Capital’s stock has risen 6.2% so far in 2025.
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