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FoxMandal, Gide win latest disinvestment as fee quotes hit record low


FoxMandal Little and French international firm Gide Loyrette Nouel won the government's mandate to take Manganese Ore (India) Ltd (MOIL) to its initial public offering (IPO) by putting in the lowest bid-price yet compared to disinvestments.

The FoxMandal team was led by Delhi senior partner Ajit Yadav and partner Sumes Dewan.

"The market is really picking up and in fact we have a couple of disinvestments coming up," said Dewan, who joined FoxMandal earlier this year from KR Chawla & Co. "We handled one at the beginning of the year with SJVN – one of the first disinvestments - that started in December."

"It seems like it is on the right track, now that the government is proposing to get a couple of more IPOs and disinvestments."

Dewan confirmed that the two law firms together quoted a flat fee of Rs 1.05 crore for advising on MOIL's disinvestment.

FoxMandal's fee quote is understood to have made up between Rs 25 and 30 lakh of that total, although Dewan declined to confirm the figure.

A disinvestment ministry source who declined to be named told Legally India that the tender for MOIL had taken place along the same basis as Engineers India Limited and Coal India Limited, where a number of law firms that had advised on the largest number of capital markets deals in the previous quarter were invited to tender.

Amarchand Mangaldas, Dua Associates, FoxMandal, Khaitan & Co and Luthra & Luthra all gave presentations to the department of disinvestment on 2 August 2010.

Dewan said that quality scores awarded to FoxMandal and Gide after their joint presentation meant that the firms' financial bids were opened, which were lower than other shortlisted firms.

Amarchand last month won the Hindustan Copper disinvestment with a joint fee-quote with Dorsey & Whitney of around Rs 1.26 crore, while Luthra & Luthra and DLA Piper won the Engineers India IPO mandate with a total bid of around Rs 1.36 crore.

MOIL's IPO is expected to raise around Rs 1,500 crore, according to Bloomberg, with bankers having pitched fee-quotes as low as Rs 150 to advise on the IPO.

A version of this article was first published by Bloomberg.

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