Tanvi is a Senior Associate in the Corporate Practice Group at Khaitan & Co. She works as a transactional lawyer, advising clients on general corporate matters and private equity investments and mergers. She has represented various corporate financial and strategic investors in a broad range of domestic and cross-border transactions.
Imagine, an Indian business owned by an offshore holding company having multiple stakeholders - an Indian investor wants to invest in the business, however, is not permitted to invest directly in the offshore company – how can it be made possible?
The dual investment structure can be an answer - relatively familiar concept for the externalized Indian businesses as illustrated above. For completeness, the externalization (or flip structure) is primarily adopted to tap growth potentials, ease regulatory compliances and/or increase tax efficiency; and are common for tech and new-age businesses.