SAM & Co Advises on 55% Stake Sale in Bright Power Project to Texmaco Rail & Engineering Limited

Shardul Amarchand Mangaldas & Co (SAM & Co) acted as the legal advisor to Texmaco Rail & Engineering Limited (“Purchaser”) in the purchase of 55% shareholding in Bright Power Projects (India) Private Limited (“Company”) from the promoters of the Company (“Sellers”). SAM & Co was responsible for the legal due diligence, structuring of the transaction, negotiating, drafting and reviewing of the term-sheet, share purchase-cum-shareholders agreement, corporate authorisations and power of attorneys in the transaction.

The M&A Team of Shardul Amarchand Mangaldas was led by Mr. Kalpataru Tripathy, Partner and involved Mr. Navin Kumar, Senior Associate, Mr. Aditya Mehra, Senior Associate and Ms. Roma A. Das, Associate.

Pursuant to acquisition of 55% equity stake of the Company by the Purchaser, the Company has become a subsidiary of the Purchaser. The Company specialises in 'over-head electrification' solutions for the Railways and has strong credentials in this specialised field, which is reflected in execution of more than 400 electrification projects pan India. The current unexecuted order book of the Company stands around Rs. 600 crores. Accordingly, with this acquisition, the Purchaser will make a foray in high growth 'over head electrification' solutions for the Rail Sector which will enable the Purchaser to further strengthen its position towards becoming a one stop integrated 'Total Rail Solution' provider company.

The parties involved in the transaction were Texmaco Rail & Engineering Limited (Purchaser); and promoters of the Company (Sellers)

Practice Group: General Corporate/M&A

Deal Value: Confidential

Date of Closing: The date of signing of the Agreement was January 03, 2016. The date of Closing was January 04, 2015.

Other advisors involved in the transaction were:

• ICICI Securities Limited - Investment advisor to the Purchaser;

• Grant Thornton Advisory Private Limited - Financial and tax advisor to the Purchaser;

• IDFC Securities Limited -  Investment advisor to the Sellers; and

• Kanga & Co – Legal advisor to the Sellers.

About Shardul Amarchand Mangaldas & Co (SAM & Co)

Shardul Amarchand Mangaldas & Co (SAM & Co) is one of India’s leading full service law firms. Founded on almost a century of legal achievement, SAM & Co. reconstituted in May 2015 and has started anew. The Firm is known for its exceptional Mergers & Acquisition, Competition Law, Dispute Resolution & Arbitration, Regulatory Litigation, Capital Markets and Private Equity practices globally.

Its mission is “enabling business by providing solutions as trusted advisors through excellence, responsiveness, innovation and collaboration”. The Firm has been at the helm of major headline transactions and litigations in all segments of industry and business besides representing major trans-national corporates on their India entry and business strategy.

Headed by eminent practitioners Shardul Shroff and Pallavi Shroff, the Firm has more than 370 lawyers, including 70 partners across its six offices in India, which include – New Delhi, Mumbai, Gurgaon, Ahmedabad, Bengaluru and Kolkata.