Shares of Sammaan Capital Ltd rose almost 5% to Rs 164.50 on Friday, Nov 21, after the Supreme Court noted that there was no wrongdoing by the company in the allegations raised against its former promoter. The stock, which opened strong, continued to gain through the session as investors reacted to the legal clarity.
The apex court was hearing an appeal linked to allegations made against the company’s former promoter. During the hearing, the court observed that Sammaan Capital itself had no involvement in any alleged misconduct, noting that the loan accounts of the borrower groups mentioned in the PIL are currently “nil”. The bench also recorded that Sammaan Capital is now a promoter-less entity and has been fully cooperating with all ongoing investigations.
This update comes against the backdrop of the company’s high-profile $1-billion acquisition by Abu Dhabi’s International Holding Co. (IHC). The deal has been under increased scrutiny after the Supreme Court asked the Enforcement Directorate to clarify its stand on alleged money-laundering concerns flagged earlier by the Central Bureau of Investigation (CBI). The regulator, Sebi, has also sought clarifications from the deal’s investment bankers and is currently reviewing the takeover filing made by Sammaan Capital on October 2.
Earlier this week, the Supreme Court directed both the CBI and Sebi to conduct a deeper examination into the allegations made in the PIL and criticised the agencies for their “cool attitude”. The matter will be heard again on December 17.
Following Friday’s observation that the company itself has no proven wrongdoing, the stock gained sharply, hitting an intraday high of Rs 164.90 compared to the previous close of Rs 157.02.
