Luxembourg-headquartered ArcelorMittal has found a foothold in the Indian steel market by acquiring a 5.3% stake in Uttam Galva Steel. The L.N. Mittal-owned company has faced substantial delays in acquiring land in Jharkhand and Orissa, thereby delaying the steel giant's entry into India. Rumors indicate that ArcelorMittal might have to shell out as much as Rs. 500 Crore ($104 Million) if successful in the open offer commencing on October 31.

Confirming rumors, Rajiv Luthra, Managing Partner of Luthra & Luthra, said that their office was advising on the transaction but refused to comment any further on the ongoing transaction. The team working on this transaction comprises Managing Partner Rajiv K. Luthra, Senior Partner Mohit Saraf [pictured], Partners Sameen Vyas [right] and Sundeep Dudeja, Senior Associate Shishir Vayttaden and Associate Jitender Tanikella. Mohit Saraf is in charge of the project finance, infrastructure, mergers & acquisitions and regulatory practice at Luthra, while Sameen Vyas heads the avaition, projects, infrastructure and energy practice.  Sundeep Dudeja's area of expertise lies in corporate finance and regulatory issues.

Luthra has previously assisted ArcelorMittal in several transactions, including the Rs. 9,600 Crore (US $2 Billion) syndicated debt financing for a petroleum refinery implemented by a joint venture of Hindustan Petroleum Corporation Limited and L.N. Mittal Group.

The Mittal Group has pursued the strategy of inorganic growth, be it in acquiring the Luxemburg based Arcelor, or in Brazil, Portugal or China. Although the Malkani family and Sainath Trading Company, the original promoters of Uttam Galva claim not to be selling out, the days following the open offer will decide whether Luthra will be assisting ArcelorMittal in a merger or a complete acquisition.