Advised NongHyup Financial Group on its minority investment through NH Capital Co. Ltd. in IFFCO Kisan Finance Limited

NongHyup Financial Group, through its subsidiary NH Capital Co. Ltd. (NH Capital), made a strategic minority equity investment in IFFCO Kisan Finance Limited (IFFCO Kisan), a non-banking financial company in India. This investment aimed to strengthen NongHyup Financial Group’s presence in the Indian financial sector while supporting IFFCO Kisan’s growth in rural credit services. Majmudar & Partners acted as legal advisors to NH Capital, ensuring a seamless transaction and compliance with Indian corporate and foreign exchange regulations.

Facilitating the Transaction

Majmudar & Partners ensured the successful completion of this cross-border private equity investment. The firm’s contributions included:

  • Regulatory Analysis and Compliance: Conducted a detailed review of Indian laws, including those under the Companies Act, 2013, the Foreign Exchange Management Act (FEMA), 1999 and the Reserve Bank of India’s regulations, to assess compliance requirements for NH Capital’s investment structure.
  • Transaction Structuring: Assisted in structuring the investment to align with Indian legal and regulatory frameworks, minimizing risks while ensuring adherence to sector-specific regulations for non-banking financial companies.
  • Due Diligence: Conducted comprehensive legal and regulatory due diligence on IFFCO Kisan, examining corporate governance, compliance, and financial health to ensure a robust investment decision.
  • Drafting and Negotiation of Transaction Documents: Drafted and negotiated key transaction documents, including the share subscription agreement and shareholders’ agreement, ensuring clear terms for governance, rights, and obligations of NH Capital as a minority investor.

This transaction marked NongHyup Financial Group’s strategic entry into India’s rural financial market, aligning with its global expansion objectives. For IFFCO Kisan, the investment reinforced its financial stability, enabling further growth in providing credit to India’s agrarian sector. Majmudar & Partners’ expertise ensured a smooth and legally sound transaction, safeguarding the interests of all parties involved.

Majmudar & Partners provides comprehensive legal solutions for cross-border private equity investments, ensuring seamless regulatory compliance and strategic support. Contact us to learn how we can help you navigate complex legal frameworks for your investments in India.

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