Takeovers, Mergers and Acquisition

The firm provides legal advice and assists in the takeover of a business in India by a foreign entity. As part of the takeover process the firm conducts corporate, legal and financial due diligences and advises on the procedures involved in the takeover.

The firm assists in obtaining various legal clearances from various authorities in India that may be required in the process of take over including approvals from FIPB, RBI, Registrar of Companies etc.

Takeover of an Indian Company by a Foreign Entity

As per the extant law, an existing Indian company can be taken over to the extent of 100% by a foreign company, provided the business carried on by the Indian company does not fall under the prohibited sectors and the shareholding extent is as per the Sectoral Cap of the Foreign Direct Investment Policy of the Government of India.

The business carried on by the Indian company must be under the automatic approval route for a direct process of take over without any prior approvals from a government body. If the business area is not under the automatic approval route, prior permission is required to be obtained from the Foreign Investment Promotion Board (FIPB).