Kotak fund invests ₹500 crore in Jindal Stainless.

Kotak Special Situations Fund (KSSF), a fund managed by Kotak Investment Advisors Ltd. (KIAL), has invested ₹500 crore in debt and equity in the country’s largest stainless steel producer, Jindal Stainless Ltd. (JSL).

KSSL said in a statement that post completion of the transaction, it will hold an about 5 per cent stake in JSL.

The investment will help JSL repay its debt, and in turn emerge out of the corporate debt restructuring (CDR) process, it added.

“We are delighted to partner with JSL by taking a 5 per cent equity stake in the company and providing financing facility to help Jindal Stainless come out of CDR,” KSSF CEO Eshwar Karra said.

Special situations fund

KSSF is a $1-billion fund with a mandate to invest in special situations in India.

Under the transaction, KSSF has purchased equity shares from the lenders of JSL and invested in the company’s debentures to repay optionally convertible redeemable preference shares and recompense dues to the lenders as part of the CDR package.

“Our investment in JSL is in line with our objective of participating across the credit lifecycle 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 de-bottlenecking plans by approaching the financial markets on competitive terms,” added Karra.

KIAL, a wholly-owned subsidiary of Kotak Mahindra Bank, focusses on the the group’s alternative assets business.

HBL