Kotak Special Situations Fund invests Rs 500 crore in Nuvoco
The investment will help fuel the growth of the consolidated cement business of Nuvoco
Kotak Special Situations Fund, an alternative investment fund has invested Rs 500 crore in Nuvoco as part of its acquisition of Emami Cements. The financing will help Nuvoco to close the acquisition and consolidate its position as a leading cement manufacturer in Eastern India.
The investment will help fuel the growth of the consolidated cement business of Nuvoco, with an eventual foray into the primary capital market.
Srini Sriniwasan, MD, Kotak Investment Advisors, said given the lock-down due to Covid and with the credit markets frozen, the situation required special effort in working remotely and closing an important acquisition financing, which is otherwise not available in the market. The wide mandate of the fund allows it to participate across debt and equity, making it one of the most flexible capital providers.
Eshwar Karra, CEO, Kotak Special Situations Fund, said it was a milestone in working remotely to establish trust, comfort and team work with Nuvoco to close this in the current environment.
Emami Group announced it has divested its entire equity stake in Emami Cements to Nuvoco Corporation for enterprise value of Rs 5,500 crore. Emami Cement has a production capacity of 6.8 million tonne per annum and 2.5 mtpa plant under construction in Kalinganagar, Odisha.
Launched in 2005, Kotak Investment Advisors has raised $4.2 billion across different asset classes including PE Funds, real estate funds, infrastructure funds and special situations fund.