Agora Group, LLC, a prominent business group, undertook the sale of its Indian captive to Virtusa Corporation as part of a broader global asset purchase agreement valued at approximately USD 11 million. Majmudar & Partners advised on the Indian regulatory aspects of the transaction, ensuring compliance with local laws and navigating foreign investment regulations.
Facilitating the Transaction
Majmudar & Partners played a pivotal role in facilitating the transaction by providing comprehensive legal guidance on critical aspects, including:
- Regulatory Compliance: Advised on Indian regulatory and foreign investment considerations to ensure the transaction complied with the Foreign Exchange Management Act and applicable foreign direct investment norms.
- Tax Advisory: Advised on applicable tax regulations and potential liabilities to ensure that the transaction was structured in a tax-efficient manner, minimizing the exposure for the client.
- Corporate Governance and Legal Due Diligence: Assisted in conducting a thorough due diligence on the Indian captive entity to identify and address any compliance gaps, corporate governance issues, and legal risks associated with the sale.
- Transaction Structuring: Drafted and negotiated transaction documents in alignment with Indian corporate laws to ensure a smooth transfer of ownership and assets to Virtusa, safeguarding Agora Group’s interests throughout the process while also ensuring alignment with the globally agreed-upon terms.
The successful sale of Agora Group LLC’s Indian captive to Virtusa Corporation was a strategically significant transaction, enabling Agora Group to consolidate its operations while supporting Virtusa Corporation’s growth in India. With Majmudar & Partners’ expert guidance on regulatory, tax, and legal aspects, the transaction was executed efficiently, ensuring full compliance and a seamless transition.
With extensive experience in cross-border corporate restructuring and asset sales, Majmudar & Partners provides reliable legal counsel for companies navigating complex transactions in India. Contact us to learn how we can support your business in achieving strategic growth and compliance.