QIP route proves lucrative for Amarchand Mangaldas closes Hindalco Pantaloon Retail and Adhunik Metaliks QIPs
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QIP route proves lucrative for Amarchand Mangaldas closes Hindalco Pantaloon Retail and Adhunik Metaliks QIPs

Bar & Bench

Qualified Institution Placements (QIPs) continue to be the favoured mode of fund-raising for India Inc this year. Amarchand Mangaldas, in particular, appears to have benefitted from this trend, closing three QIPS within the last two weeks alone. Amarchand Mangaldas’ Bombay offices closed the $600 million (Approx. Rs. 2,800 crores) QIP for Hindalco Industries, as well as Pantaloon Retail’s Rs. 500 crore ($107 million) QIP. The Kolkata and Delhi offices of Amarchand Mangaldas jointly advised the Rs. 137 crore ($29 million) QIP issue by Kolkata-based steel products manufacturer Adhunik Metaliks.

Qualified Institution Placements (QIPs) continue to be the favoured mode of fund-raising for India Inc this year, with a slew of QIPs opening in November. Amarchand Mangaldas, in particular, appears to have benefitted from this trend, closing three QIPS within the last two weeks alone.

Amarchand Mangaldas’ Bombay offices closed the $600 million (Approx. Rs. 2,800 crores) QIP for Hindalco Industries. This is the second-largest QIP in India after Axis Bank’s $625 million (Rs. 3,007 crores) QIP in September this year, in which Amarchand acted as the domestic legal counsel to the underwriters. Sources disclose that the Amarchand team was led by Capital Markets Partner Yash Asher.

AZB & Partners acted as the domestic legal counsel to the Book Running Lead Managers. The AZB Team was led by Capital Markets Partner Shameek Choudhary. The Singapore Offices of Jones Day acted as the international legal advisors.

The company’s in-house legal and compliance issues were handled by the Company Secretary and Vice President, Anil Malik. Hindalco has two law firm Partners as Independent Directors on its Board, C.M. Maniar, Partner at Crawford Bayley, and E.B. Desai, Partner at Mulla & Mulla & Craigie Blunt & Caroe.

Amarchand Mumbai also acted as the sole legal advisors to Pantaloon Retail’s Rs. 500 crore ($107 million) QIP. Pantaloon is planning to use the funds raised through the QIP to repay debt and fund expansion. The company is currently in debt to the tune of Rs. 3800 crores ($814 million). Earlier this year, the company received shareholders approval to restructure the company, and to hive off four subsidiaries into independent companies. Pantaloon Retail, which is India’s biggest listed retailer, has Anil Harish, Managing Partner of law firm D.M. Harish, on its Board of Directors. The in-house legal and compliance matters were handled by Deepak Tanna, the Company Secretary.

The Kolkata and Delhi offices of Amarchand Mangaldas jointly advised the Rs. 137 crore ($29 million) QIP issue by Kolkata-based steel products manufacturer Adhunik Metaliks. The company is planning to use the funds for long-term growth and expansion. The Company Secretary and Associate Vice President (Legal) Anand Sharma handled the in-house legal and compliance issues.

2009 is the year of the QIP. Market analyses show that over 43 companies have used the QIP route to raise approximately Rs. 34,000 crores ($7.2 billion), with several more expected before the end-of the year. Amarchand, in particular, has done handsomely in the capital markets segment, advising some of the biggest issues of the year, including Nagarjuna Constructions, Cipla, Aban Offshore, GVK Power, Welspun Gujarat, HCL Infosystems and Unitech.

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