Kotak Special Situations Fund, managed by Kotak Investment Advisors Ltd, on Monday announced that it has committed Rs 550 crore to Sanghi Industries Group in the form of non-convertible debentures. Of the total, KSSF has invested Rs 500 crore in the NCDs of Sanghi Industries Ltd and Rs 50 crore in the NCDs of a company owned by the promoters of SIL, which in turn will be infused in SIL.
KSSF’s timely infusion will correct SIL's capital structure, help the company’s liquidity profile, and enhance its operations. KSSF will be investing from its $1 billion fund. With this investment, KSSF has completed 13 deals and deployed over Rs 6,300 crore.
SIL is the flagship company of the Ravi Sanghi Group. It manufactures and distributes cement under the brand ‘Sanghi Cement’. The company has a strong presence in Gujarat and is one of India’s low cost cement producers. “SIL’s 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. It also underlines how KSSF, through its experience and expertise, has structured a solution that addresses SIL's specific financial requirements,” Eshwar Karra, CEO-Kotak Special Situations Fund at KIAL said.
