Luthra & Luthra Law Offices recently assisted Mandala Capital in obtaining an approval from the Competition Commission of India (CCI) for its investment of INR 289.80 crores in Jain Irrigation Systems Limited (JISL) and INR 402.20 crores in Jain Farm Fresh Foods Limited (JFFF). The investment will allow Mandala Rose and Mandala PrimRose Co-Investment Ltd. of the Mandala Capital group (SPVs of Mandala Capital) to acquire upto 7.55% in JISL and upto 17.35% in JFFF, as also tweeted by regulator.
JFFF’s business spans food manufacturing units at Jalgaon (Maharashtra), Vadodara (Gujarat) and Chittoor (Andhra Pradesh), besides its indirect subsidiaries carrying on food business activities. Whereas, JISL is engaged in manufacturing of micro irrigation systems, PVC pipes, HDPE pipes, plastic sheets, agro processed products, renewable energy solutions, tissue culture plants, financial services and other agricultural inputs since the last 34 years.
In the first stage, JFFF will raise INR 402.20 crores INR from Mandala by issuing preferential equity shares and compulsorily convertible debentures (CCDs). Upon conversion of CCDs in five years, Mandala’s shareholding is likely to increase upto 17.13% stake in JFFF depending on its performance. In the second stage, JISL will raise INR 289.80 crores INR by making preferential issue of CCDs with 5 per cent annual coupon to MandalaThe CCDs will be converted into ordinary equity shares of JISL within 18 months from the date of allotment of share at rupees 80 INR per piece or at such higher price as determined in accordance with the applicable SEBI norms.
Acting as legal advisors to Mandala Capital, the competition law team of the firm was led by G.R. Bhatia and Abdullah Hussain (Partners); ably assisted by Kanika Chaudhary Nayar (Managing Associate), Tripti Malhotra and Arjun Nihal Singh (Associates).
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