Reliance’s record-busting $7bn rights issue gifts cap markets boon to AZB, Khaitan, Sidleys, Lathams

Whoever said we are looking at a mammoth recession and slower capital markets? Not the legal advisers close to Reliance Industries...

After now four gigantic rounds of fundraising for its subsidiary Jio Platforms, Reliance Industries (RIL) is issuing Rs 53,125 crores of equity in what is billed as India’s largest ever rights issue (as well as RIL’s first in 30 years). The deal also included 14 investment banks making it probably the largest syndicate of banks that ever did a rights issue together.

AZB & Partners acted for Reliance Industries in what what is fast becoming a near exclusive relationship, at least for mega deals. The AZB team was led by partners Ashwath Rau, Varoon Chandra and Agnik Bhattacharyya, alongside senior associates Sweta Ananthanarayanan and Shivali Singh, with associates Harish Choudhary, Aratrika Choudhuri and Bharat Mordani.

Khaitan & Co acted as counsel to the banks (see full list below), led by executive director Sudhir Bassi, partner Aditya George Cheriyan, counsel Soumya Mohapatra, principal associate Aayush Mohata, senior associate Sathvik Ponappa and associates Devarshi Mukhopadhyay, Sai Saket Rachakonda and Tishita Mukherjee.

Sidley Austin LLP bagged the mandate as international counsel to Reliance Industries, led by partner Manoj Bhargava and senior associate Varun Jetly.

Latham & Watkins was drafted in as international counsel to the lead manager banks, led by partner Rajiv Gupta, and associates Stacey Wong, Priyanka Mehta and Esha Goel.

The global-co-ordinators and lead managers were JM Financial Limited, Kotak Mahindra Capital Company Limited, Axis Capital Limited, BNP Paribas, Citigroup Global Markets India Private Limited, DSP Merrill Lynch Limited, Goldman Sachs (India) Securities Private Limited, HDFC Bank Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, IDFC Securities Limited, J.P. Morgan India Private Limited, Morgan Stanley India Company Private Limited and SBI Capital Markets Limited.

Asia’s richest man Mukesh Ambani-owned Reliance Industries Ltd (RIL), which has been on a fundraising spree despite the covid-19 pandemic, is set to open its massive ₹53,215 crore rights issue on Wednesday. — Mint

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Yo 4 years ago interesting top rated controversial

Mr Bassi is the best

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Merchant Banker 4 years ago controversial

Sigh..

But yes, in comparison to all other capital market partners across all firms sourcing work for CM teams Mr Bassi seems to be doing much better.

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Fan 4 years ago controversial

[...] is the cutest! :)

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A 10-word comment posted 4 years ago was not published. [Appeal decision]

Guest 4 years ago

The finest two capital market duos of Rajiv/Bassi and Manoj/Varoon doing their dance for India's 2nd largest company by market cap - that must have been some nice "virtual" dance. Who got to watch it live?

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Doubt 4 years ago

At this point, RIL probably has some bulk deal with AZB, I'm assuming.

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CP 4 years ago

6 Crores for 15 Lead Managers and 10 Crores for 4 Counsels...Bahut Na Insafi Hai Kaliya...

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RauFan 4 years ago interesting controversial

AZB has been minting money during this pandemic. Thanks to Mr. Rau.

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M&ALawyer 4 years ago interesting controversial

Can someone explain how Ashwath Rau has been getting the best of marquee deals ALL THE TIME?

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Engagement Dynamics 4 years ago interesting top rated

Well, Ashwath is a very senior m&a lawyer in india (top 5 i would think), and him bagging marquee deals does not come as a surprise. Reliance would have retained him for their JIO fund raise and again, it is no surprise that he was instructed to act on all 4 tranches of the fund raise (given reliance would not have wanted to deal with different lawyers for each leg).

On the other hand, it does come as a surprise that Raghubir menon was on the other side in all 4 tranches representing different investors. I really do wonder how he pulled that off.... I wonder if reliance had something to do with this...perhaps asking investors to hire him since they were used to dealing with him? I don't see how a lawyer can represent 4 different investors without a helping hand from the company....

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LawSchoolRepresent 4 years ago controversial

The real reason is that the Law Schoolites have proved their mettle in the greatest economic crisis during this pandemic. The 2 biggest players right now (Rau at AZB & Raghubir at SAM) are both Nagarbhavi products.

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BhaviPartner 4 years ago interesting

Its not about the law school. Its about an individual and her/ his competencies. Stop making it about law schools. NLSIU is not what it used to be. It now churns out shoulder chipped millennial's who think that small tasks such as making a photocopy or doing an inspection are beneath their dignity. They need a reality check!

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LawSchoolRepresent 4 years ago controversial

In all fairness, there's nothing wrong in people thinking some types of work (whatever they may be, photocopying or otherwise) are beneath them. Education is supposed to open your eyes to finding what you like to do, not just upskilling you to xerox faster. In any case, for every LawSchoolite shrugging at xeroxing, there are still 2 other LawSchoolites putting in the gruntwork at the big firms.

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Guest 4 years ago

No, not when you have gone down there to intern. If you don't like the work, then leave. But staying on for that PPO that you can flaunt later and at the same time, showing a bad attitude is ridiculous.

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LawSchoolRepresent 4 years ago

That is the fault of the Firm. To give a PPO to someone who doesn't actually want it. My batch had a top4 firm offer a PPO to a guy who had candidly said he doesn't really want a firm job (to HR and to his interviewer). He said he took the interview only so to not seem impolite. But they ended up giving him a PPO. And overlooked someone else who ended up going another internship at the same firm, before she was given a PPO.
So yes - this isn't about LawSchoolite arrogance. Its about firms having bad systems - thats who you should have a problem with. Those LawSchoolites that do want to do our line of corp work - do it quite well.

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Guest 4 years ago

If he didn't want an offer, what was he doing in the firm to begin with? Weekly hula dance? What rubbish! Were you sitting in the interview along with him, or overhearing? It is highly improbable that a firm would make a job offer to someone who categorically says that he doesn't want the job. And no good person gets 'overlooked' because someone else gets a PPO. Had the other person been deemed good enough, they would also have been given an offer. All you are doing is grandstanding. There are Law School students who work hard, and there are those who have attitude issues. Both are facts. Like most other tier one NLUs. Nobody says those who opt for non corp jobs only have attitude issues. But if you are working at a place, even as an intern, you have to do whatever you are asked unless it's an immoral or illegal order. That's plain professionalism.

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well 4 years ago

I know for a fact that he had picked the internship, just to try Corp out. Wasnt for him, so he indicated in the interview that he wasn't sure if it was something he was keen on pursuing. I see nothing unprofessional here. Except for firms overlooking more suitable people.

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Lawfirmie 4 years ago

Think about your stand before you apply to a firm. That kind of thinking will get you a top position....in the rejected pile. Humility is an attractive quality.

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Luna 4 years ago

Of course, lighbulb! Reliance would have obviously dictated this requirement - having dealt, and negotiated, with Raghubir on FB deal, they clearly didn't want other lawyers on the opp side for other investors - that would have wasted a lot of time goven Reliance had set themselves strict deadlines for the successive fund raise...

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Engagement Dynamics 4 years ago

yes well done smartypants on making it sound so straightfwd. I was hoping that people don't state the obvious. The fact that reliance dictated the requirement is obvious, but we are talking about 4 sophisticated investors who are probably used to their own set of lawyers. Point being, reliance probably dictated the requirement as a deal breaker.

And such a situation is quite unique given investors making these big ticket investments were forced to be guided by a lawyer of reliance's choosing.....which they surely wouldn't have wanted to....anyway, this is mota bhai we talking about, and shows the attractiveness of the jio for these investors.....

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Luna 4 years ago

Yes, again, lightbulb! That was indeed the case...now who's stating the obvious ? ;)

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confused2 4 years ago

What possible good faith reason could a target company have to insist that the investor hire ONLY one specific lawyer that is picked by the target?

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Fake News 4 years ago interesting top rated

You obviously don’t like Menon or are a Rau teamster. In case you didn’t know, Reliance’s promoters are related to Zia Mody. So obviously they go to AZB for the big deals. So these deals aren’t landed by Rau as you (or Rau) may want to think. Reliance was with AZB before Rau and continues to work with them. So please check your facts before dishing out such drivel.

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Engagement Dynamics 4 years ago

I really don't know either personally and just know of them professionally - Don't get me wrong, Rahubir Menon seems right up there with Ashwath Rau (in the top 5 bracket). And I wasn't aware that reliance promoters are related to Zia Mody - that's fine, pretty ordinary course I would think .... these big law firm founders pull a lot of clients based on networking. That does not take away anything from Ashwath Rau though....

But coming back to the original point - reliance seems to have hired opposing counsel as well, pretty badass of mota bhai.... i recall a friend who worked at reliance once told me, it was always mota bhai's way or the highway....

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M&A Guruji 4 years ago

Ye sab mithya hai vats.

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MananLaw 4 years ago

No Induslaw?

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Visitor 4 years ago interesting top rated

Interesting times. M&A lawyer lands up doing a Capital Markets deal, India’s largest rights issue that too.

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Observer 4 years ago interesting

Good going by AZB and KCO. Considering the uniqueness of this transaction and the sheer size, this transaction has all the makings for the ‘Deal of the Year’!

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Ex KCO 4 years ago

How much did kco undercut here?

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Jury 4 years ago

Yeah because Reliance would sway that easy based on undercutting and the 14 bank consortium would not have said anything about it. In these transactions fees is not even discussed till sometime in the middle. Grow a pair

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... 4 years ago

Magnanimous of Haigreve not to have his name on a capital markets deal. Guess he knows he is not a capital markets lawyer unlike some...

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Reliance’s record-busting $7bn rights issue gifts cap markets boon to AZB, Khaitan, Sidleys, Lathams