The Bangalore office of Amarchand Mangaldas advised Prestige Estates, a Bangalore-based real estate company, on a ₹3.5 billion (US$66 million) institutional placement of shares. The issue opened for a day on 23 January and according to media reports it was subscribed 2.75 times.
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Partner Arjun Lall, headed the Amarchand Mangaldas team, which included Vijay Parthasarathi, a senior associate at the firm. Parthasarathi told India Business Law Journal that the institutional placement was “a first for South India”.
A team led by Bhakta Patnaik, a Mumbai-based partner at S&R Associates, was the domestic legal adviser to the underwriters, CLSA India and JP Morgan India. Rahul Guptan, a Singapore-based partner at Clifford Chance, was international counsel to the underwriters.
Following this issue the promoters of the company, the Razack brothers, will hold 75% of the company. This will allow them to comply with a Ministry of Finance mandate that requires all listed companies – other than state-owned or public-sector companies – to have a minimum public shareholding of 25% by 3 June.
Public-sector companies have up to August to achieve a 10% minimum public shareholding. The routes by which companies are to raise their public shareholding are specified by the Securities and Exchange Board of India.
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