2010-2011 Capital Markets Practice – Indian Law Firm Rankings IPO and QIP


Bar & Bench brings IPO – QIP rankings for the financial year 2010-2011. The report carries interviews of Cyril Shroff, Sandip Bhagat, Ajay Vaidya, Madhurima Mukherjee, Raj Rani Bhalla, Arun Balasubramanian and Pooja Sinha along with Indian law firm rankings. 

Bombay Stock Exchange’s (BSE) Sensitive Index (Sensex) has been range bound this year hovering around 17,000 – 20,000. However, 2010- 11 has been another record year for the Indian capital markets with 124 IPOs (Initial Public Offerings) and FPOs (Follow on Public Offerings) and 41 QIPs (Qualified Institutional Placements).


According to Bloomberg data, proceeds from fresh issues (IPOs) by Indian companies in 2010 surpassed even the levels reached in 2007. The Government made a strong mark on the markets, raising significant capital with string of IPOs and FPOs. Till March 2011, 124 IPOs had accounted for Rs. 51,000 crore (US$11.3 billion) in capital raised, averaging close to a billion dollar every month. This along with 41 QIPs that raised nearly Rs. 19,722 crore (US$4.3 billion) meant that Indian companies raised more than Rs. 70,000 crore (US$15.5 billion) in the 2010-2011 financial year.


Khaitan & Co., Managing Partner, Rabindra Jhunjhunwala speaking on the markets said, “The Indian markets have shown shades of recovery post the global recession. Indian companies have taken advantage of the pockets of recovery in the domestic markets”.


Apart from the Government companies and the engineering and real estate sectors, this year saw the emergence of other sectors in fund raising. Gold and fashion are the new sectors to watch out in 2011 with companies like Joyalukkas, TBZ, Ratanchand, Tara Jewels and fashion salon company promoted by Jawed Habib planning to raise capital. Gold loan company Muthoot Finance also joined the capital-raising spree with its Rs. 1,400 crore IPO (US$311 million).


Law Firm Rankings


Once again, Amarchand recorded the highest number of capital market mandates amongst Indian law firms, acting as legal advisor in 43 IPO / QIP transactions as compared to 67 transactions last year.


The primary driver of decline in mandates handled by Amarchand was the QIP market, as the number of QIP mandates decreased from 31 to 15. Overall, Amarchand continued to be the “go to” Indian firm for the issuers and the investment banks.


*Link Legal merged with Zenith India in 2011


Bar & Bench spoke to the Capital Markets team at Amarchand’s Mumbai & Delhi offices


Indian Capital Markets in the post recessionary period

Cyril Shroff (pictured): From about April 2009, we have seen substantial activity in the capital markets. We have benefited from having the largest capital markets team across the country. We have large capital  markets teams in our Mumbai, Delhi and Bangalore offices and a small team in Hyderabad. In fiscal year  2010 the focus was on companies which needed capital in the form of real estate companies and  infrastructure companies and mainly in the form of QIP offerings. In fiscal year 2011 we have seen very  large offerings from Government companies where mostly the Government has reduced its stake. This  has had some impact on private sector offerings. Despite that we have acted on some of the largest and  most interesting capital raising in India and involving India. These include acting for the company on IDR  issuance by Standard Chartered PLC, advising Essar Energy PLC in the listing of its oil and power assets  on the London Stock Exchange (we were the only Indian advisors on one of the largest listings on the  London Stock Exchange), advising the underwriters on India’s largest public offering ever of Coal India,  advising the underwriters on the ADR of MakeMyTrip Ltd.


In addition, we also advised the Government and the issuer on large issues such as NTPC and Power Grid. On the private sector side, we advised on several transactions including the follow on public offering of Tata Steel Ltd. and QIPs by Tata Motors and Adani Enterprises Ltd.


Amarchand’s team – Has the capital market team increased in size and your recruitment plans for the year ahead.

Cyril Shroff: We are the market leaders in capital markets and in addition to two Managing Partners, we have three full time equity capital markets partners working out of Mumbai, Delhi and Bangalore offices. Our team includes nearly 60 lawyers who work on only equity capital markets. In addition, we have also added Niloufer Lam as a debt capital market partner and her team comprises of six lawyers. We see capital markets as a very focused area and will continue to recruit for this practice in the next few years.


Amarchand’s strategy for 2011 – Targets set in terms of the number of transactions.


Cyril Shroff: Our strategy remains to do India’s largest and the most challenging capital markets transactions.  This has been evidenced by our involvement in Standard Chartered PLC IDR, the Coal India IPO, the IPO of Essar Energy PLC, etc.  We hope to retain our market share on large transactions and even on smaller ones where our role is to draft the entire document.  We believe this approach allows us to keep our team excited.  We are quite focused on this.  We think that new sectors such as consumer industry and interesting players in the financial services space will be approaching the market for funds in the coming years.  


Shardul Shroff: We have acted on all the important transactions where we would have liked to see our name. Given our relationships and our profile in this practice, we hope to continue this trend.


Yash J. Ashar: We hope to be part of the most interesting and challenging transactions in this space. The Standard Chartered IDR was a fantastic experience where the regulations were changing and we were working on new structures and documentation. Our efforts will be to continue to pitch for such transactions in the next few years.


Indian Law Firms: Rankings based on transaction value of more than US$ 100 Million


The average IPO size this year has been US$91 million (Rs. 411 crore). Since Coal India raised nearly 30 percent of the total funds raised this year, the average funds raised through the IPO would have fallen to US$64 million (Rs. 288 crore) per IPO, if not for the Coal India transaction. Table below depicts rankings of law firms that have concluded IPO / QIP’s in excess of US$100 million.


Law Firm Rankings: Methodology


Parameters considered for rankings:

1) We have factored in all transactions where: (a) in case of an IPO, a company has filed the draft red herring prospectus, red herring prospectus or a prospectus with the SEBI; and (b) in case of a QIP, a company has filed a Placement Document with the stock exchanges between April 1, 2010 to March 31, 2011.

2) We would like to highlight that there are several instances where companies have filed their draft red herring prospectus with SEBI but have not yet raised capital from the market. We have included such transactions for the purposes of determining the rankings.

3) Please note this report is limited to only IPOs (including FPOs) and QIPs and does not cover other forms of capital raising. Please also note that this report does not include RHP filed with ROC for the financial year 2010-2011.


Click here to download the 2010-2011 report  

Click here to download last years report

Click here for the interview of Sandip Bhagat

Click here for the interview of Madhurima Mukherjee

Click here for the interview of Raj Rani Bhalla

Click here for the interview of Ajay Vaidya

Click here for the interview of Arun Balasubramanian and Pooja Sinha


Capital Market Report 2011