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S&R, Jones Day, Amarchand see through promoter-friendly IPP debut

QIP to IPP: Promoter friendly issue
QIP to IPP: Promoter friendly issue

S&R Associates and Jones Day advised the book running lead managers (LMs) Kotak Mahindra Capital and UBS Securities India on the first ever Institutional Placement Programme (IPP) in India. Indian realty major Godrej Properties’ (GPL) issued a private placement of Rs 4.9 bn ($95m) of equity shares worth Rs 575 each. GPL was advised by Amarchand & Mangaldas & Suresh A Shroff & Co.

S&R Associates partner Sandip Bhagat acted as the domestic counsel for the LMs which were advised by Jones Day partner Manoj Bhargava and associates Karun Cariappa and Thomas Rooks, on the IPP which was introduced by SEBI this year to allow promoters to sell up to 10 per cent of the company’s equity shares to institutional investors, according to Jones Day.

Bhargava said: “The fact that the offering was oversubscribed suggests a positive outlook for Indian equity offerings in the near future.” The programme received bids for 18 per cent more than the shares on offer, according to Money Control.

Amarchand & Mangaldas partner Yash Ashar acted for GPL which is the first Indian company to invoke the IPP option which has been introduced to enable publically listed companies to comply with Indian securities laws’ minimum shareholding requirements.

The price of Rs 575 fixed per share, which is the lower end of the price band, was the reason behind share value of GPL tanking after the IPP’s announcement, Mint reported marketmen as saying. The Issue comprised of 7.44 million shares with a green-shoe option of 0.74 million shares aggregating to 8.19 million shares, according to Economic Times. GPL raised Rs 470 crore from the offer, which closed today.

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