06 Jul, 2011

Amarchand and Khaitan Advise on Investment in Indian Pipe Maker

Indian law firms, Amarchand and Khaitan, are advising on a private equity deal in India’s pipe manufacturing sector, worth $500 million.

New York-based PE firm, Apollo Global Management LLC is being advised  by Amarchand & Mangaldas & Suresh A. Shroff & Co, led by partner, Gunjan Shah, on its investment in Welspun Group, a steel pipe manufacturer based in Mumbai. Khaitan & Co. is advising Welspun Group, led by partners Haigreve Khaitan and Anand Mehta.

It is reported that Apollo will subscribe to Welspun’s global depository receipts and convertible debt equivalent to $500 million. The deal is set to complete in August, pending regulatory approvals, and  Apollo is said to acquire almost a 20 per cent stake in the pipe manufacturer. If the deal is completed, this will be the second-largest private equity investment in India this year, after Bain Capital LLC’s $850 million investment in New Delhi-based Hero Honda Motors Ltd. in February, according to Reuters.

Amarchand & Mangaldas recently advised on another major acquisition in India’s resources sector. In April, London-based Vedanta Resources offered Malaysia’s state-owned oil company Petroliam Nasional Berhad $1.5 billion for a 10 percent stake in Cairn Energy’s India business. Clifford Chance and AZB & Partners were also involved in the deal, according to The Asian Lawyer.

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