With the increase in demand for business capital in the competitive corporate environment over the past decades; capital markets have become indispensable in facilitating both companies and governments to raise capital through stocks, bonds, and other securities. Having shaped the landscape, regulatory and economic reforms in India have helped capital markets to grow substantially.
These developments have been led by the Securities and Exchange Board of India (SEBI), which is responsible for playing a crucial role in the promotion and implementation of reforms to improve transparency as well as corporate governance, and to facilitate easier access to capital. The capital markets are broadly categorized into two main heads: equity markets, for trading of shares, and debt markets for trading and issuance of bonds and other fixed income instruments. The recent trends in the Indian capital markets show the rise in the use of:
- SPACs (Special Purpose Acquisition Companies): these have gained widespread popularity as an alternative, and by enabling the companies to go public without following the traditional IPO route.
- Foreign Portfolio Investments (FPIs): the substantial growth in the awareness about the favourable regulatory and economic reforms, has spurred the foreign investors to invest in Indian equities and debt markets.
- REITs and InvITs: Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have introduced new investment avenues for companies in these sectors and is providing a mechanism for them to raise capital more efficiently.
These trends reflect the changing dynamics of the capital markets in India and are opening new prospects for raising capital and increase investment in various sectors.
At Khurana & Khurana, we provide expert guidance across a broad range of capital market transactions, including Initial Public Offerings (IPOs), Qualified Institutions Placements (QIPs), preferential allotments, rights issues, Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), and Alternate Investment Funds (AIFs). We tailor our services to meet the specific needs of each client, ensuring the most appropriate strategy for their transactions.
Our highly experienced team works closely with clients, ranging from established corporations and innovative startups, to government entities. Whether assisting with their first public offering or helping expand their capital structure, we ensure seamless execution of the stages of the transaction.
Our Key Areas of Expertise:
1.Equity Offerings:
-
- Initial Public Offerings (IPOs): Our IPO advisory includes all the process from pre- IPO diligence to post- listing compliance, including drafting and filing the Draft Red Herring Prospectus (DRHP), assisting in stock exchange approvals, price discovery, transaction documentation and support in ongoing compliances.
- Qualified Institutions Placements (QIPs): We offer complete support on all aspects of Qualified Institutions Placements (QIPs) and ensure strict compliance with the regulations laid down by the Securities and Exchange Board of India (SEBI) and also help our clients with a hassle free and efficient issuance process.
2. Debt Offerings:
-
- Public and Private Placement of Bonds and Debentures: We assist companies with the public or private placement of the bonds and debentures, including convertible and non-convertible debentures (NCDs) and perform the end-to-end structuring, documentation and regulatory compliances of the issuance ensuring that the debt instruments are compliant with regulatory norms as well as meet the investor expectations.
3.Regulatory Compliance
-
- SEBI Compliance: We have an expert and experienced team of lawyers which assist our clients in navigating through SEBI’s ICDR Regulations, LODR Regulations and other applicable regulations for compliance. In the capital market practise, we meticulously assist the regulatory filings such as listing approvals, continuous disclosure requirements and corporate governance protocols for our clients.
4.Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)
-
- We have extensive experience in advising on the formation and listing of REITs and InvITs. These instruments offer new ways for investors to gain exposure to real estate and infrastructure projects, and new ways for companies to raise funds efficiently. We assist in setting up these trusts, navigating through tax implications and ensuring conformity with the SEBI guidelines.
5.Ongoing Compliance
-
- Post-Listing Compliance– We provide comprehensive support after closing the transaction, to ensure our clients meet all post-listing compliance In this, we provide corporate governance advice, regulatory filings, financial disclosures and maintain investor relations to create trust and transparency.
- Corporate Governance– We assist our clients in the implementation of corporate governance frameworks by assisting them in drafting board policies, carrying out audits and ensuring compliance with SEBI LODR Regulations applicable to listed companies.
Services We Offer-
Khurana & Khurana has a team of expert professionals specialized in providing end-to-end service in the capital market practice area, and broadly offers to provide the following services:
- Assisting companies, especially portfolio entities of strategic investors, become IPO ready.
- Assisting and advising on the structuring of the offering, including facilitating strategic investor exits, as may be necessitated by the specific transaction.
- Performing legal due diligence on the issuer and providing recommendations for corrective action if any irregularity has been outlined during such process.
- Drafting, reviewing, and finalizing all relevant documentation, applications, consents and approvals necessary for the offering.
- Depending on the type of offering, preparing key offer documents, including draft red herring prospectus, placement document, offering circular or information memorandum.
- Ensuring that the offer documents comply with the applicable laws, regulations or guidelines and that ascertain that all mandatory disclosures have been made.
- Aligning with international legal counsel as well as coordinating with other intermediaries which are part of the process.
- Providing tailored advice on listing related issues and assist in interacting with government authorities and stock exchanges.
- Reviewing, drafting and negotiating underwriting, depository and escrow agreements from a requirement specific to a particular offering.
- Assisting with the closing and finalizing the offering.
Khurana & Khurana has global expertise in Indian and international regulatory frameworks, and has been positioned as a trusted advisor for clients engaged in capital market transactions. We offer customised solutions to meet the specific requirements of each client, which maybe a startup or a corporate giant. We offer end-to-end support to our clients through all the stages of capital market transactions, from initial strategy making, to the complete execution and implementation, and ensure a seamless closing of transaction. With our team’s experience across various sectors, we are capable of providing strategic and informed advise suited to the business objectives of our clients. We also keep ourselves abreast of the emerging trends in the Indian capital markets, such as the growing SPACs (Special Purpose Acquisition Companies), and the regulatory changes that influence foreign portfolio investments. Our advisory services guide our clients through these trends, capitalize new opportunities, and be in compliance with the changing legal environment.
Download PDF Here.