MUMBAI: Kotak Investment Advisors on Monday said its Kotak Special Situations Fund has invested Rs 500 crore in Jindal Stainless in form of debt and equity. The investment will help Jindal Stainless to come out of the corporate debt restructuring (CDR) process and repay its loans and debt obligations to banks, the company said in a statement.
Kotak Special Situations Fund is a USD 1 billion-fund with a mandate to invest in special situations in India.
Under the transaction, the fund has purchased equity shares from lenders of Jindal Stainless and invested in debentures of the company to repay the optionally convertible redeemable preference shares and recompense due to lenders as part of the CDR package.
Post completion of the transaction, KSSF will hold around five per cent equity in Jindal Stainless. "We are delighted to partner with Jindal Stainless by taking a five per cent equity stake in the company and providing financing facility to help it come out of CDR," Kotak Special Situations Fund CEO Eshwar Karra said.
He further said the investment in Jindal Stainless is in line with its objective of participating across the credit life-cycle of a company by providing unique solutions to the financing gaps seen in the industry. "Coming out of the CDR process, JSL can now chart out its growth and debottlenecking plans by approaching the financial markets on competitive terms," Karra added.