Kotak Special Situations Fund (KSSF), managed by Kotak Investment Advisors (KIAL), has committed Rs 550 crore to Sanghi Industries Group in the form of non-convertible debentures (NCD’s), the company said in a media release.
Of the total, KSSF has invested Rs 500 crore in the NCD’s of Sanghi Industries (SIL) and Rs 50 crore in the NCD’s of a company owned by the promoters of SIL, which in turn will be infused in SIL.
KSSF will be investing from its USD 1 billion fund. With this investment, KSSF has completed 13 deals and deployed over Rs 6,300 crore.
The fund infusion will correct SIL’s capital structure, help the company’s liquidity profile, and enhance its operations, the release said.
Eshwar Karra, CEO, KSSF said, “SILs performance has been under pressure owing to high energy costs. This was further exacerbated by the upcoming debt repayments availed for the expansion capex. KSSF’s infusion terms out the debt and should correct the capital structure.”
In the BSE filing, Sanghi Industries said that the board of directors have approved the allotment of 5,000 secured, unrated, unlisted, redeemable, non-convertible debentures (NCDs) totally aggregating to Rs 500 crore having face value of Rs 10 lakh each on private placement basis to the applicant.
Tenure of instrument is 36 months, coupon rate is 12% per annum to be paid on monthly basis, the company informed in the regulatory filing.
SIL is engaged in the manufacturing and distribution of cement under the brand ‘Sanghi Cement’ and has a presence in Gujarat.