Rajani Associates has recently acted as Legal Advisors for the Buy-Back of equity shares of Automobile Corporation of Goa Limited (“ACGL“).

ACGL is a public listed Company, jointly promoted by the Economic Development Corporation of Goa and Tata Motors Limited. ACGL is engaged in the business of manufacturing of pressed parts, components, sub-assemblies for automobiles and bus bodies and component parts thereof.

Details of the Buy Back

ACGL bought back 333,000 (three lakhs thirty-three thousand) fully paid-up equity shares at a price of Rs.600 per equity share for an aggregate amount of Rs. 199,800,000. The Buy-Back was undertaken on a proportionate basis from eligible shareholders through the tender offer process prescribed under the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018.

Keynote Financial Services Limited acted as the Manager to the Buy-Back.

Our scope of work included (i) conducting diligence on the Company, and (ii) preparation, review, revision and finalisation of all Buy-Back related documentation, including Public Announcement, Letter of Offer and other ancillary documents.

Transaction Team: Sangeeta Lakhi, Senior Partner and Rahul Pandey, Senior Associate

Key Challenges: Conducting diligence, drafting and reviewing of Buy-Back related documentation in a limited period of time.

Status: The Buy-Back offer opened for subscription on October 18, 2019 and closed on November 20, 2019.