Kotak Special Situations Fund invests Rs 500 million in Jindal Stainless Ltd
CHENNAI: (), managed by Investment Advisors Limited (KIAL), has announced that it will invest Rs 500 million in Jindal Stainless Limited () in the form of debt and equity.
This will help the country's largest stainless steel producer out of the corporate debt restructuring (CDR) process and help JSL pay its loans and debt obligations to banks, Kotak said in a statement.
Under the transaction, KSSF purchased equity shares from Jindal Stainless lenders and invested in Company obligations to pay OCRPS (Optionally redeemable preference shares redeemable) and reward lenders as part of the CDR package. After the completion of the transaction, KSSF will hold approximately 5% of the capital of Jindal Stainless Limited.
“Our investment in Jindal Stainless Limited is in line with our goal of participating in the entire credit life cycle of a company by providing unique solutions to the financial gaps seen in the industry. Upon exiting the CDR process, JSL can now trace its growth and cost reduction plans by approaching financial markets in competitive terms, ”said Eshwar Karra, CEO of Kotak Special Situations Fund at Kotak Investment Advisors Ltd.
Kotak Special Situations Fund is a $ 1 billion fund mandated to invest in special situations in India.