A Kotak Mahindra Bank arm on Tuesday announced that it has invested Rs 550 crore in Sanghi Industries Group by subscribing to non-convertible debentures of the cement-making company and its promoter grouping.
Kotak Special Situations Fund’s infusion will correct Sanghi Industries’ capital structure, help the company’s liquidity profile, and enhance its operations, according to a statement.
The investments being done from a USD 1 billion fund by KSSF will include Rs 500 crore in the NCDs of Sanghi Industries (SIL) and the remaining Rs 50 crore in the NCDs of a company owned by the promoters of SIL which in turn will be infused into the company.
With this deal, KSSF has completed 13 deals and deployed over Rs 6,300 crore, the statement said.
On the SIL investment front, it said the company is engaged in the manufacturing and distribution of cement under the brand ‘Sanghi Cement’, and has a strong presence in Gujarat and is one of India’s low-cost cement producers.
“SILs 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 chief executive Eshwar Karra said. PTI AA MR MR
