Two Indian law firms are advising on a $500 million private equity deal in India’s pipe manufacturing sector.
Gunjan Shah, a partner at Amarchand & Mangaldas & Suresh A. Shroff & Co., is leading the firm’s team advising New York-based private equity firm Apollo Global Management LLC on its investment in Welspun Group, a Mumbai-headquartered steel pipe manufacturer.
Apollo will subscribe to Welspun’s global depository receipts and convertible debt equivalent to $500 million. The deal is expected to close in August, pending regulatory approvals. According to the Business Standard, Apollo will acquire a stake of nearly 20 percent in the pipe manufacturer.
The deal will also give Apollo an interest in Welspun’s subsidiaries including a producer of sponge iron (an ingredient of wrought iron), and a construction service provider.
Welspun will use the funds to expand its iron ore assets through acquisitions and to invest in solar power plants.
Khaitan & Co. is advising Welspun Group. Its team is being led by partners Haigreve Khaitan and Anand Mehta in Mumbai.
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.
If completed, Apollo’s acquisition 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. AZB & Partners, J Sagar Associates and Desai & Diwanji advised on that transaction.