Herbert Smith Freehills has advised the Government of India, as vendor, on the US securities and international capital markets aspects of a US$3.6 billion share sale by Coal India Limited on the Bombay Stock Exchange and the National Stock Exchange of India. The deal is the third largest equity capital markets deal in India ever and the largest share sale in the country in almost six years.

Headquartered in Kolkata, India, Coal India is the largest coal miner in the world. The base deal size represents 5% of Coal India's enlarged share capital- 315.8 million shares were on offer with an option to upsize to 631.6 million. The share sale is part of India's renewed economic reform agenda,  under which the Indian government is seeking to raise US$10 billion by selling minority stakes in state-owned companies in a privatisation drive.

Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank, Goldman Sachs, JM Financial, Kotak and SBI Capital Markets were underwriting brokers on the share sale. They were advised by Amarchand & Mangaldas & Suresh A Shroff and Cleary Gottlieb Steen & Hamilton. Khaitan & Co was Indian counsel to the issuer.

The Herbert Smith Freehills team on the deal was led by Singapore partner Siddhartha Sivaramakrishnan. Siddhartha commented:

"This is a significant transaction in many ways. It is the first India ECM deal of more than US$1 billion since the new government came into power last year and demonstrates not just an appetite for the company and the industry but also a strong revival in one of the world's largest economies. The reform agenda and projections that India will see rapid GDP growth in 2015 have boosted investor confidence and Coal India will set investment momentum."

Our Singapore capital markets team, led by Siddhartha and partner Philip Lee, has been in the forefront of advising on India-related transactions. Significant recent deals include:

  * a US$1 billion share sale in New York- and Mumbai-listed Infosys Ltd.
  * a US$1 billion dual-tranche note offering by state-run Oil India Limited
  * a US$300 million bond offering by India's largest automobile manufacturer, Tata Motors Ltd
  * a US$750 million dual-tranche fixed rate bond offering by Tata Motors Limited

The securities mentioned herein have not been and will not be registered under the United States Securities Act of 1933. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. There has not been and will not be any public offering of the securities mentioned herein in the United States.