Kotak Special Situations Fund set to secure Rs 700 cr road deal
ROADS & HIGHWAYS

Kotak Special Situations Fund set to secure Rs 700 cr road deal

Kotak Special Situations Fund, the alternative investment arm of Kotak Investment Advisors, will deploy half of its Rs 7,300 crore fund as it readies to secure its eighth agreement, a first for a road asset worth Rs 700 crore.

Kotak Special Situations Fund will pay lenders to acquire a majority stake in stressed HKR Roadways Ltd, sources told the media.

The Telangana-based special purpose vehicle (SPV) is owned by publicly listed Gayatri Highways Ltd, DLF and associates, and Megha Engineering and Infrastructure Ltd. In addition to the Kotak fund, HKR Roadways will also pay lenders Rs 50 crore, said sources. The deal is part of a one-time settlement of around Rs 750 crore proposed by promoters to HKR Roadways’ seven lenders led by Canara Bank.

The other lenders are Indian Bank, Punjab National Bank, Union Bank of India, Indian Overseas Bank, Bank of Baroda and India Infrastructure Finance Company. The total payout of Rs 750 crore indicates a haircut of 50% for the lenders, informed sources. The Kotak fund may invest funds in HKR Roadways for capital expenditure and maintenance outside of the deal.

The investment could see a turnaround within two to three years. After the deal, Gayatri Highways will hold 26% of HKR Roadways, the sources told the media.

Launched in February 2019, the special fund received Rs 3,650 crore from Abu Dhabi Investment Authority. It hit its final close in August 2019 at Rs 7,130 crore. The fund focuses on special situations, credit and distressed spaces in India. In January 2020, it struck its debut deal In March 2021, the fund closed two deals by investing in payment solutions provider AGS Transact Technologies and speciality chemicals firm DCW.

Image Source


Also read: Kotak to launch $800 mn infra fund to invest in projects across India

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

Kotak Special Situations Fund, the alternative investment arm of Kotak Investment Advisors, will deploy half of its Rs 7,300 crore fund as it readies to secure its eighth agreement, a first for a road asset worth Rs 700 crore. Kotak Special Situations Fund will pay lenders to acquire a majority stake in stressed HKR Roadways Ltd, sources told the media. The Telangana-based special purpose vehicle (SPV) is owned by publicly listed Gayatri Highways Ltd, DLF and associates, and Megha Engineering and Infrastructure Ltd. In addition to the Kotak fund, HKR Roadways will also pay lenders Rs 50 crore, said sources. The deal is part of a one-time settlement of around Rs 750 crore proposed by promoters to HKR Roadways’ seven lenders led by Canara Bank. The other lenders are Indian Bank, Punjab National Bank, Union Bank of India, Indian Overseas Bank, Bank of Baroda and India Infrastructure Finance Company. The total payout of Rs 750 crore indicates a haircut of 50% for the lenders, informed sources. The Kotak fund may invest funds in HKR Roadways for capital expenditure and maintenance outside of the deal. The investment could see a turnaround within two to three years. After the deal, Gayatri Highways will hold 26% of HKR Roadways, the sources told the media. Launched in February 2019, the special fund received Rs 3,650 crore from Abu Dhabi Investment Authority. It hit its final close in August 2019 at Rs 7,130 crore. The fund focuses on special situations, credit and distressed spaces in India. In January 2020, it struck its debut deal In March 2021, the fund closed two deals by investing in payment solutions provider AGS Transact Technologies and speciality chemicals firm DCW. Image Source Also read: Kotak to launch $800 mn infra fund to invest in projects across India

Next Story
Infrastructure Urban

EET Secures $350 Mn Financing For Decarbonisation

EET Fuels, the trading name of Essar Oil - UK, said it has attracted new financing facilities demonstrating market confidence in the company’s decarbonisation strategy, market position and strategic importance. According to the official press release, the company has agreed $350 million in re-financing through a combination of a new bank financing and upsizing of existing trade credit financing facilities in this quarter. This follows the announcement in October 2024 of $650 million in financing facilities including a new receivable facility with ABN AMRO Bank and the extension of ..

Next Story
Infrastructure Energy

MNRE Issues Operational Guidelines for PM-Surya Ghar

The ministry of new and renewable energy (MNRE) has issued operational guidelines for implementing various components under the PM-Surya Ghar: Muft Bijli Yojana. The scheme aims to facilitate the adoption of rooftop solar systems across the residential sector through innovative financing and implementation models. The guidelines detail the implementation of two models for rooftop solar installations. Under the RESCO (Renewable Energy Service Company) model, third-party entities will invest in rooftop solar installations, allowing consumers to pay only for electricity consumed without bear..

Next Story
Infrastructure Energy

BP Warns of Low Profit as Production Falls

BP warned that lower production, weak refining margins and sluggish trading would see its profit in the fourth quarter of 2024 fall from the previous three months. Since taking the helm a year ago, CEO Murray Auchincloss has scaled back the firm's energy transition strategy in an effort to boost profits and regain investor confidence as BP's share lags behind its competitors. A capital markets event previously scheduled for Feb. 11 in New York will instead take place on Feb. 26 in London, BP said, as Auchincloss is recovering from a planned medical procedure. BP said the drop in refi..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000