STIC Pan Asia 4th Industrial Growth PEF Fund (STIC), a private equity fund focused on industrial growth opportunities, proposed a minority investment in a Singapore-based entity with a subsidiary in India. Majmudar & Partners provided comprehensive legal support, addressing Indian regulatory aspects to facilitate the investment.
Facilitating the Transaction
Majmudar & Partners ensured that the investment aligned with Indian legal frameworks and the fund’s strategic goals. The firm’s key contributions included:
- Regulatory Review and Compliance: Evaluated Indian regulatory requirements under the Foreign Exchange Management Act (FEMA), 1999, and SEBI regulations to ensure the investment adhered to Indian laws governing foreign investments.
- Due Diligence: Conducted thorough due diligence on the Indian subsidiary to identify potential risks, including compliance gaps in corporate governance, tax liabilities, and contractual obligations.
- Structuring the Investment: Advised on structuring the investment to ensure it was tax-efficient and aligned with Indian foreign exchange and corporate laws while mitigating legal and financial risks.
- Documentation and Negotiation: Drafted and negotiated investment agreements, including shareholder agreements and corporate governance documents, to safeguard the fund’s minority rights and align them with Indian legal requirements.
- Post-Investment Compliance: Advised on post-investment compliance, including filing requirements with the Reserve Bank of India (RBI) and the Ministry of Corporate Affairs (MCA), to ensure smooth integration of the Indian subsidiary into STIC’s portfolio.
The proposed investment enabled STIC to expand its industrial portfolio and leverage opportunities in India’s rapidly growing economy. Majmudar & Partners ensured seamless execution of the transaction by addressing Indian regulatory nuances and aligning the deal with the client’s strategic objectives.
Majmudar & Partners excels in navigating the complexities of private equity investments, offering tailored legal solutions for cross-border transactions. Contact us to explore how we can guide your private equity investments in India.