Cyril Amarchand Mangaldas: OnEMI Fundraise Nets ₹832 Crore Private Placement

• OnEMI Technology Solutions Limited successfully raised approximately ₹832 crore through an equity share issuance.
• The fundraise was conducted via a preferential issue on a private placement basis, involving about 34 investors.
• Cyril Amarchand Mangaldas advised OnEMI Technology Solutions on this capital-raising endeavor.
• Ravi Dubey and Ramgovind Kuruppath provided strategic inputs, with Nayana Dasgupta leading the transaction team.
• This transaction exemplifies a significant private capital raise within India's technology sector.

This transaction demonstrates the legal framework and execution for significant preferential share issues and private placements in India, offering a precedent for structuring similar large-scale capital raises for technology companies.

OnEMI Technology Solutions Limited recently secured a substantial capital infusion, successfully raising approximately ₹832 crore. This significant fundraise was executed through an issuance of equity shares, structured as a preferential issue on a private placement basis. The transaction saw participation from a diverse group of approximately 34 investors and investor entities, demonstrating strong market confidence in the company.

The successful completion of the Cyril Amarchand Mangaldas OnEMI fundraise marks a pivotal moment for the technology firm, providing considerable resources for its strategic objectives. The method chosen, a preferential issue, allows a company to offer shares to a select group of individuals or entities, often strategic investors, without a public offering. This approach is frequently utilized for targeted capital raises from specific investor pools.

Cyril Amarchand Mangaldas (CAM), a prominent legal firm, provided comprehensive advisory services to OnEMI Technology Solutions throughout the fundraise process. Their expertise was instrumental in navigating the complexities of the equity issuance and ensuring compliance with regulatory requirements for such a large-scale private placement.

The legal team from Cyril Amarchand Mangaldas capital markets practice played a crucial role in structuring and executing the transaction. Strategic inputs were provided by Ravi Dubey, Partner and Regional Co-Head of Capital Markets – West, alongside Ramgovind Kuruppath, Partner and Co-Head of Corporate M&A. The day-to-day leadership of this intricate transaction was handled by Principal Associate Nayana Dasgupta, with valuable assistance from Associates Archit Jain, and Deepali Bhandari and Kshipra Shukla, who were Associates at the time, highlighting the depth of expertise within the firm.

The fundraise for OnEMI Technology Solutions was structured as a preferential issue on a private placement basis, a common yet complex mechanism for companies to raise capital in India. This method involves offering shares or other securities to a select group of identified investors, rather than through a public offering, which requires adherence to specific regulatory guidelines set forth by Indian corporate law and securities regulations.

Such a structure allows companies to tailor the terms of the issuance to specific investors, often leading to more efficient and targeted capital acquisition. The involvement of a leading firm like Cyril Amarchand Mangaldas underscores the legal rigor required for transactions of this magnitude, particularly when dealing with a substantial number of investor entities and a significant capital amount like the ₹832 crore raised by OnEMI Technology Solutions.

This transaction demonstrates the legal framework and execution for significant preferential share issues and private placements in India, offering a precedent for structuring similar large-scale capital raises for technology companies. For the Indian technology sector, the successful completion of such a substantial private placement by OnEMI Technology Solutions provides a clear example of how growth-stage companies can attract considerable investment through carefully structured equity offerings.

The ability to secure ₹832 crore from approximately 34 investor entities through a private placement highlights the continued investor appetite for promising technology ventures in India. This type of capital raise is crucial for companies like OnEMI to scale operations, innovate, and expand their market presence, reinforcing the robustness of private capital markets in supporting the nation's burgeoning tech ecosystem.

This transaction demonstrates the legal framework and execution for significant preferential share issues and private placements in India, offering a precedent for structuring similar large-scale capital raises for technology companies. Lawyers advising on capital markets or corporate M&A should note the involvement of CAM and the specific transaction structure for future reference.

Source: Original reporting via Bar & Bench