Amarchand SampR and Jones advise on the first IPP by Godrej

Mumbai-based Godrej Properties has raised $93 million (Rs. 470 crore) through institutional private placement of equity shares worth Rs. 575 each. The issue was oversubscribed by 17 per cent and shares were offered in a price band of Rs. 575-620 a share..Godrej Properties is the first company to complete a placement through this recently notified route. SEBI had notified the IPP route to enable companies to raise their minimum public shareholding to the stipulated 25 per cent. The IPP allows promoters to sell up to 10 percent of the company’s equity shares to institutional investors..Jones Day advised Kotak Mahindra Capital Company and UBS Securities India. The Jones Day team was led by capital markets Partner Manoj Bhargava and along with Associates Karun Cariappa and Thomas Rooks..S&R Associates acted as the domestic counsel to the lead managers. The S&R team was led by Partner Sandip Bhagat..Amarchand Mangaldas acted as the domestic legal counsel for Godrej Properties with a team led by Partner Yash Ashar..Godrej Properties intends to use the net proceeds of the issue towards prepayment/repayment of debt, acquisition of land development rights and general corporate purposes, reports ET..Jones Day Capital Markets Partner Manoj Bhargava said, “This was a ground breaking transaction to work on. As it was the first ever IPP, transaction documentation and the offering structure had to be carefully thought through and implemented. The commitment of, and faultless execution by, the lead managers made it a pleasure to be involved. The fact that the offering was oversubscribed suggests a positive outlook for Indian equity offerings in the near future.”