MUMBAI : Kotak Strategic Situations India Fund II, managed by Kotak Alternate Asset Managers Ltd, has led a ₹3,200 crore investment in Jayaswal Neco Industries Ltd (JNIL) by purchasing non-convertible debentures (NCDs) issued by the Nagpur-based company.
In a statement on Thursday, Kotak Alternate Asset Managers said that KSSF II has invested ₹1,500 crore in JNIL, thus helping the company refinance its existing debt of ₹3,200 crore. KSSF II, the statement said, will be investing from its $1.25 billion fund.
“We are happy to take the lead in refinancing JNIL debt. The investment in JNIL aligns with our fund’s objective of providing solution capital to businesses with a positive outlook,” said Eshwar Karra, chief executive officer (CEO), Kotak Strategic Situations India Fund, Kotak Alternate Asset Managers.
“We strongly believe that the Indian steel sector and the commercial vehicles segment will be the key drivers to India’s continuing growth in the future,” said Karra.
According to Rahul Chhaparwal, partner, Kotak Strategic Situations India Fund, Kotak Alternate Asset Managers, the investment will give the company the financial flexibility to achieve long-term growth.
JNIL is promoted by Arvind Jayaswal and Ramesh Jayaswal and has interests in the specialty auto-grade alloy steel segment and is primarily focused on the commercial vehicles segment. It owns and operates a fully integrated steel plant of 1 million-tonne-per-annum capacity in Chhattisgarh. Jayaswal Neco Industries was among the 28 companies that were part of the RBI’s second list of defaulters sent to banks in 2017 for debt resolution.
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Published: 14 Dec 2023, 11:55 PM IST