Gujarat Themis Biosyn: INR 585 Crore Secured Financing for Acquisition

• Gujarat Themis Biosyn Ltd. secured INR 585 crore in financing.
• The funds were primarily used to partially finance the acquisition of Micro Biopharm Japan Company Limited.
• Cyril Amarchand Mangaldas acted as legal counsel for the lenders, EAAA India Alternatives Ltd. and Avendus Finance Pvt. Ltd.
• This transaction exemplifies a large-scale, cross-border secured debt financing deal in India.

This transaction serves as a notable example for legal and financial professionals involved in large-scale secured financing for cross-border acquisitions within India.

Gujarat Themis Biosyn Ltd. recently secured a significant financing package amounting to INR 585 crore. This substantial funding was primarily allocated to support a strategic acquisition, specifically to cover a portion of the consideration for its purchase of Micro Biopharm Japan Company Limited, an entity based in Japan.

This INR 585 crore acquisition loan represents a major financial maneuver for Gujarat Themis Biosyn, enabling its expansion into the Japanese market through the acquisition of Micro Biopharm Japan. The transaction highlights a growing trend of Indian companies pursuing cross-border M&A activities, leveraging substantial debt financing to facilitate such strategic moves.

The complex financial arrangement involved secured financing, a common structure in large-scale corporate debt transactions in India. In this particular instance, Cyril Amarchand Mangaldas (CAM) provided legal counsel to the lenders, EAAA India Alternatives Ltd. and Avendus Finance Pvt. Ltd., guiding them through the intricacies of the deal.

The role of legal advisors like Cyril Amarchand Mangaldas in such a significant Gujarat Themis Biosyn INR 585 crore secured financing deal is crucial for ensuring compliance with regulatory frameworks and safeguarding the interests of all parties involved. Their expertise was instrumental in structuring the India secured debt financing, particularly given the cross-border nature of the underlying acquisition of Micro Biopharm Japan.

This transaction serves as a notable example for legal and financial professionals involved in large-scale secured financing for cross-border acquisitions within India. The involvement of key financial players like EAAA India Alternatives and Avendus Finance, alongside the legal expertise of Cyril Amarchand Mangaldas, showcases a robust deal structure that could influence future precedents in the market.

The successful execution of this INR 585 crore acquisition loan by Gujarat Themis Biosyn for its Micro Biopharm Japan acquisition financing underscores the increasing sophistication and scale of M&A activities originating from India. It demonstrates the availability of substantial debt capital for strategic growth initiatives, even when these involve international targets, making it a significant case study for those navigating the complexities of India's corporate finance landscape.

Lawyers advising on large-scale secured financing for cross-border acquisitions in India should note this transaction as an example of a significant deal structure and the involvement of key financial and legal players, potentially influencing future deal precedents.

Source: Original reporting via SCC Times