Kotak Fund pumps in Rs 500cr in Jindal Stainless, to get 5%

Kotak Investment Advisors-managed Kotak Special Situations Fund (KSSF) on Monday announced an investment of Rs 500 crore in Jindal Stainless Limited (JSL) in the form of debt and equity. Post completion of the transaction, KSSF will hold five per cent equity stake in the stainless steel producer and will provide financing facility to help Jindal Stainless come out of corporate debt restructuring, Kotak Investment Advisors said in a statement on Monday.

Under the transaction, KSSF has purchased equity shares from lenders of Jindal Stainless and invested in debentures of the company to repay the OCRPS (Optionally Convertible Redeemable Preference Shares) and recompense due to lenders as part of the CDR package. KSSF is a USD 1 billion fund with a mandate to invest in special situations in India.

"We are delighted to partner with Jindal Stainless Limited by taking a five per cent equity stake in the company and providing financing facility to help Jindal Stainless come out of CDR," Kotak Special Situations Fund CEO Eshwar Karra said. Kotak Investment Advisors is a wholly-owned subsidiary of Kotak Mahindra Bank Limited, which focuses on the alternate assets business of the group..