The Department of Disinvestment has divested a 10% stake in Coal India through an offer for sale on the BSE (Bombay Stock Exchange) and the National Stock Exchange of 315.8 million shares, with an option to sell up to 315.8 million more shares. The government generated approximately US$3.69 billion from the sale in the largest equity offering in India to date.
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The structure of a base deal of 5% plus the right to sell an additional 5% led to “a number of interpretational issues on the Securities and Exchange Board of India offer for sale circular which we navigated successfully,” said the team from Khaitan & Co, which advised the government on Indian law issues.
The deal was launched in a very short time frame to ensure it was done without any prior notice to the market.
The team from Khaitan & Co included partners Sharad Vaid, Nikhilesh Panchal and executive director Sudhir Bassi. Herbert Smith Freehills was international counsel to the government.
Amarchand Mangaldas was the Indian legal counsel to the brokers. The team comprised partner Prashant Gupta, principal associate Sayantan Dutta and principal associate-designate Manjari Tyagi.
Cleary Gottlieb Steen & Hamilton was international counsel to the brokers.
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