5 law firms to slug it out for SAIL’s FPO

Bar & Bench News Network

Oct 21, 2010

Government owned Steel Authority of India’s (SAIL) follow on public offer (FPO) will have five top law firms fighting it out for being named as the legal advisor to the offer.According to the Economic Times, Amarchand, Luthra, S&R Associates, Fox Mandal and Crawford Bayley are in the running.  

 

The daily also goes on to report that the first phase of the offer which is expected to launch late this year or early next year will be managed by the shortlisted firm. The shortlisted firm will manage the first phase of the 20 percent share sale programme, under which the Government plans to divest 5 percent of its stake in the company, while the steel giant will issue additional shares equivalent to a 5 percent stake. 

 

At present, the Government holds a stake of a little over 85 percent in SAIL and post-FPO, its equity in the company is expected to go down to about 69 percent. SAIL wants to part-fund its expansion programme with the proceeds from the share sale. 

 

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Comments(4)
  • 1. "Gonna be Fox Mandal...". Karan, (Unknown City?)
  • 2. "luthra..?". Vijay, Hyderabad
  • 3. "Since the markets on the high, which ever firms gets selected as Legal Advisor will not matter, since it is the Lead Managers and the Book Runners who will take the issue through in the form of fixing the issue price and the publicity and maintaining the books and finalising the allotment after closure of issue. Except for liaising with SEBI and the stock exchanges for preparation of the prospectus and other documentation, role of legal advisor in a public issue / rtghts issue is not visible to the public. SAIL's performance is good for the past three years and nothing will prevent it from raising a reasonable funds as capital. It is the Government investment which is now replaced by private funds in the form of public issues. Further, it is the overseas investors who do the bidding and the domestic investors are marginalised. But ultimately, SAIL needs funding for its expansion and modernisation. Since the Government is unable to bill the programme, SAIL is approaching the capital markets soliciting the investors. ". SRIHARI, CHENNAI
  • 4. "It's Crawford Bailey finally...". Karan, (Unknown City?)
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