Capital Markets

Luthra & Luthra and DLA Piper have won two out of two government disinvestment tenders this week for consultancy Engineers India Ltd (EIL) and the world's largest coal producer Coal India Ltd, defeating firms such as Amarchand Mangaldas, AZB & Partners-Clifford Chance, Crawford Bayley and S&R Associates in a competitive tender.

The Luthra & Luthra team for both pitches was led by capital markets head and partner Madhurima Mukherjee partnered with DLA Piper as international counsel, where Singapore capital markets partner Stephen Peepels and director Biswajit Chatterjee led the presentations.

The bidding process for both was carried out on the basis of joint bids by domestic and international firms, giving presentations and technical skills and finally submitting on price in the last round.

Engineers India Limited (EIL)
In the pitch for EIL the Luthra & Luthra team together with DLA Piper defeated Amarchand Mangaldas, Crawford Bayley, Axon Partners LLP, Link Legal and S&R Associates to win the mandate.

Amarchand led by Delhi managing partner Shardul Shroff was partnered with O'Melveny Myers and S&R Associates pitched jointly with Dorsey & Whitney.

Luthra is understood to have been awarded around 73 points in technical competency against Amarchand's 76 points, but Luthra ultimately won the instruction on price from Amarchand.

Coal IndiaLimited
On the Coal India pitch, Luthra & Luthra and DLA are understood to have been up against several firms, including Amarchand together with Jones Day, AZB & Partners with its best friend Clifford Chance and Jurisprudent Consulting Partners together with K&L Gates.

Luthra is understood to have ultimately won that instruction after technical presentations, scoring around 78 points against Amarchand's 76 points.

However, Amarchand is understood to have ultimately bagged the instruction for the underwriters on the Coal India disinvestment.

Background
In case of navratna PSU Coal India, the department of disinvestment plans to raise Rs 12000 crores by divesting 10 per cent of Government stake in the entity.

Coal India initial public offering is likely to hit the market in July.

The Economic Times reported: "CIL is amongst the eight or 10 companies that will be a part of the government’s disinvestment drive for 2010-11. The government holds a 100% stake in the company, which has which has a paid-up capital of Rs 6,316 crore. The proposed 10% stake sale is expected to fetch Rs 14,000 crore in a total Rs 40,000 crore budgeted from disinvestment for the current fiscal."