The Kotak Special Situations Fund makes investments intending to primarily increase the long-term capital appreciation and returns like interest, dividend, capital gains or, the share of profit through a combination of appropriate instruments on its investments. They have expertise in a wide range of sectors including, health care, information technology, industries, infrastructures, power, real estate, financial services. Now the Kotak Special Situations Fund (KSSF) has invested Rs.500 crore in Nuvoco Ltd to finance the acquisition of Emami Cements. The KSSF is controlled by the Kotak Investment Advisors (KIAL), which is a wholly-owned subsidiary of Kotak Mahindra Bank.
Nirma Group is going to acquire Emami cement for an enterprise value of Rs 5,500 crores. And they are moving to make this acquisition through its Subsidiary Nuvoco Vistas Corporation Limited. It is a leading manufacturer and retailer of building materials. This acquisition is meant for the consolidation of its current position as a leading cement manufacturer in Eastern India. And the consolidation will help the growth in investments with an eventual foray into the primary capital market.
Last Wednesday, Emami Informed the stock exchange that they have completed 100% transfer of their shares to Nuvoco. They made an agreement regarding the consolidation last February for an enterprise value of Rs 5,500 crores. As a result of the acquisition of Emami cements by Nuvoco they can expand the total cement capacity in the areas of eastern, northern, and western India to a range of 23.5mtpa, which includes an ongoing project expansion capacity of Jojoba plant and over 60 ready-mix plants. The lockdown due to COVID-19 froze the entire market, which affected the working conditions, many firms lost their full capacity in handling these types of difficult situations, at this point of time they require some special kind of attention in safeguarding their working environment mostly in the remote areas. The Managing Director of KIAL Mr. Srini Sriniwasan said that their wide mandates allow others to participate across the debt & equity making them us as one of the most flexible capital providers.
The Kotak Special Situation Fund intends to maintain a stable and competent business management. The CEO of Special Situation Fund is Mr. Eshwar Karra, is also a part of the core leadership team at Kotak Investment Advisors Ltd and he is very much experienced in structuring and executing complex financial transactions as well as securing profitable exists.
