Kotak special situations fund invests in Sanghi Industries

Kotak Special Situations Fund (KSSF), the alternative investment arm managed by Kotak Investment Advisors Limited (KIAL) will invest ₹550 crore ($67.4 million) in listed cement player Sanghi Industries Ltd (SIL), from its $1 bn fund.

The investment would be made in the form of non-convertible debentures, as per a statement by Kotak.

According to the statement, ₹500 crore has been invested in the NCDs of Sanghi Industries and the remaining ₹50 crore in the NCDs of a promoter-owned entity.

“The board of directors has inter alia approved allotment of 5,000 secured, unrated, unlisted, redeemable, non-convertible debentures totally aggregating to ₹500 crore on private placement basis,” noted a statement by Sanghi Industries on exchanges.

The following investment is intended to correct SIL’s capital structure, help the company’s liquidity profile and enhance operations.

With this investment, KSSF has completed 13 deals and deployed over ₹6,300 crore of its $1 billion fund, which it closed in August 2019. The fund focuses on special situations, credit and distressed spaces in India and its first transaction was in January 2020.

Sanghi Industries is the flagship company of the Ravi Sanghi Group. It is engaged in the manufacturing and distribution of cement under the brand ‘Sanghi Cement’. The company has a strong presence in Gujarat and operates in the low-cost cement producers’ segment.