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Herbert Smith Freehills Advises Coal India On Share Sale.

5 February, 2015

 

Herbert Smith Freehills has advised the Government of India, as vendor, on the US securities and international capital markets aspects of a USD 3.6bnshare sale by Coal India Limited on the Bombay Stock Exchange and the National Stock Exchange of India. The base deal size represents 5% of Coal India’s enlarged share capital- 315.8m shares were on offer with an option to upsize to 631.6m. The share sale is part of India’s renewed economic reform agenda,  under which the Indian government is seeking to raise USD 10bn by selling minority stakes in state-owned companies in a privatisation drive.

 

The Herbert Smith Freehills team on the deal was led by Singapore partner Siddhartha Sivaramakrishnan. Siddhartha commented: “This is a significant transaction in many ways. It is the first India ECM deal of more than USD 1bn since the new government came into power last year and demonstrates not just an appetite for the company and the industry but also a strong revival in one of the world’s largest economies. The reform agenda and projections that India will see rapid GDP growth in 2015 have boosted investor confidence and Coal India will set investment momentum.”

 

Other parties involved include Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank, Goldman Sachs, JM Financial, Kotak and SBI Capital Markets as underwriting brokers on the share sale. They were advised by Amarchand & Mangaldas & Suresh A Shroff and Cleary Gottlieb Steen & Hamilton. Khaitan & Co was Indian counsel to the issuer.

 

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