Manoj Bhargava, Partner, Jones Day (Singapore)

What are the capital market trends over the last five years and and where do you think the market is headed over the next five years?

The last five years have seen many new foreign law firms undertake international transactions for Indian companies. There are reasons for this. Earlier, capital markets in India, particularly, for Indian companies raising equity capital in excess of Rs. 2,250 crore ($ 500 million) was very limited. Now there are several companies, which are raising significant amounts of capital. So, the Indian capital market has matured in terms of depth. In addition, if you compare the sheer number of capital markets transactions that have completed in the past three years in India with any other country, barring perhaps US and China, you’d be surprised with the high levels of activity in India.

Another trend in the last two years, there have been stricter levels of risk management, compliance and disclosure. Investment banks are more focused and committed to Indian clients. Investors, especially after the 2008 downturn, are more discerning and active. And regulator activism and oversight has increased as well.

What is the importance of India for Jones Day? What strategies separate Jones Day from the rest?

Jones Day continues to maintain its leadership position in the international capital markets practice in India. We believe in delivering quality work, which means that our transactions involve significant commitment and time for partners who have tremendous experience and expertise. We see India as a long-term story and investing right talent and expertise in building our India practice. Our commitment and expertise is evidenced by recent best deals of the year awards to the Tech Mahindra-Satyam acquisition and the Adani Power IPO.

Which capital markets transaction has been the most challenging last year and why?

One of the most challenging transactions last year was the IPO of Adani Power, which raised in excess of Rs. 2,700 crore ($ 600 million). The reasons are several. Firstly, there had not been any IPO of this size in India for the past 18 months or so. Secondly, the then new ICDR regulations brought forth new nuances such as the ability to have anchor investors. Moreover, 11 Banks were underwriting the issue. This issue gave the confidence to the markets that the capital markets are back in action after a year and half of difficult time.

Do you hold the view that the geographical location of the transaction team affects a capital markets transaction?

Singapore is becoming a more accepted jurisdiction to do the international aspects of India related transactions. This is because of the short time difference and ease of travel to a number of cities in India as compared from London or New York, for example.

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