IndusLaw and Cyril Amarchand Mangaldas (CAM) advised on Japanese multinational Sojitz Corporation’s USD400 million investment in the holding structure of Indian special purpose vehicle IOC GPS Renewables (IGRPL).
With this investment, Japan’s Sojitz marks its entry into the biomethane production and sales sector in India. GPS Renewables (GPSR) and Indian Oil Corporation (IOCL), 含羞草社区 largest state-owned oil company, established IGRPL as a 50:50 joint venture.
“The deal involved complex structuring aspects. Given Sojitz’s investment was in the holding structure of IOC GPS Renewables Private Limited (IGRPL) … corporate law considerations such as layering compliance, the nature of the securities to be subscribed, core investment companies’ (CIC) risks, premium recognition etc., had to be analysed from a structuring and compliance perspective,” said lead partner Saurav Kumar of the IndusLaw team, advising Sojitz.
“The CBG [compressed biogas] projects are housed in IGRPL, and it was essential that the mechanism in relation to voting on matters, specifically the reserved matters, was strategically thought through to ensure that Sojitz and GPSR Arya’s [GPSR’s climate infrastructure platform] final decision in the development and operation of the CBG projects was well protected. It was a demanding deal for the team.”
Partners Saurav Kumar and Swathi Sreenath led IndusLaw’s transaction team, assisted by principal associate Shreya Chaturvedi, and associates Suyash Bajpai and Kaustubh Garg.
Partner Shashwat Kumar from the project advisory team and partner Lokesh Shah from the tax advisory team, along with their associates, also provided support.
CAM counselled GPS Renewables with partner Alok Sonkar leading the transaction team. Director of corporate transactions Karishma Jumani, senior associate Utkarsh Mankad, and associates Akansha Menghrajani and Khushboo Bapna also provided assistance.
Partner Vijay Pratap Singh Chauhan advised on competition law, while partner Aniket Singhania and associate Devanshi Soni advised on infrastructure and project-related matters.
IGRPL is engaged in the design, construction, operation and maintenance of biomethane plants across India. In collaboration with GPSR and IOCL, Sojitz will leverage collective expertise and networks to scale biomethane operations nationwide and explore further opportunities in the bioenergy space, both domestically and internationally.
