0.1 overview

Overview

Kotak Special Situations Fund makes strategic investments in companies with a sector agnostic approach. The fund makes investments with the objective of obtaining primarily long-term capital appreciation and returns in the nature of interest, dividend, capital gains or share of profits through a combination of appropriate instruments on its investments.

We invest across sectors to tap into the special situations and stressed assets opportunity in India. We have expertise in a wide range of sectors including real estate, healthcare, infrastructure, power, consumer, industrials, information technology and financial services etc. All these sectors will benefit from rising income levels, increased consumption and favorable demographics in India. Such fundamental drivers coupled with attractive entry valuations in the distressed investments are expected to offer attractive returns to investors.

Investment Strategy

The Fund’s investment objective is to generate target returns by primarily investing in distressed/stressed or special situation opportunities in India. Investments typically involve a combination of debt, equity and mezzanine instruments. Our investment strategies focus on the following:

Special Situations: In certain special situation opportunities which may arise due to lack of liquidity or otherwise regulatory restrictions for banks and non-banking financial companies. These will include situations like investor take-out financing, group restructuring and promoter financing.

Asset Acquisitions: In limited ongoing business operations but with valuable assets which can be sold to generate returns. In such cases we look at pure asset plays, where we invest in entities with assets such as real estate, hotels or other commercial assets. Returns are generated predominantly by sale of underlying assets to one or multiple parties over a period of time.

Stressed Assets: With positive and stable business outlook and competent management. However, such businesses could be under financial stress for various external / transient reasons. In such cases, we partner with existing promoters by offering required financial support.

IBC Opportunities: With positive and stable business outlook and where a change or augmentation of management is necessary to improve performance for regulatory reasons. In such cases, we partner with strategic or operating partner to acquire and restructure the business.

Kotak Special Situations Fund differentiates itself in the following ways:

The Fund is focused on opportunities in special situations like investor take-out financing, group restructuring and promoter financing, credit and distressed assets under Insolvency and Bankruptcy Code (IBC), pre-IBC opportunities, and assets under liquidation.

The Fund has a broad mandate to invest across asset types and sectors with a flexible approach to investing and structuring.

The Group and team has a deep understanding of various sectors and experience of working with Indian promoters over last 30+ years.

Our Team

0.3 our team

Eshwar Karra

CEO – Special Situations Fund

Eshwar joined the Kotak Mahindra Group in 2000 and brings with him over two decades of financial services experience.

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Rahul Chhaparwal

Executive Director

Rahul has been with Kotak Special Situation Fund since inception and plays a pivotal role across all the facets of its operations...

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Rahul Shah

Executive Director

Rahul Shah has joined Kotak Special Situations Fund in January 2019 after spending more than 7 years with Kotak Private Equity Group.

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Shishir Srivastava

Vice President

Shishir Srivastava joined Kotak Special Situations Fund in February 2021 and brings with him 11 years...

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Pratik Parekh

Vice President

Pratik Parekh joined Kotak’s Special Situations Fund in January 2019 and brings with him almost 12 years of experience...

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Rohan Kilachand

Associate Vice-President

Rohan joined Kotak Special Situations Fund in April 2019 and brings with him 9 years of experience...

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Agrata Gupta

Associate

Agrata joined Kotak Special Situations Fund in December 2018.

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Tej Gosrani

Analyst

Tej joined Kotak Special Situations Fund (KSSF) in November 2020...

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0.4 Select Portfolio

OmniActive Health Technologies

Established in 2005, OmniActive Health Technologies (“OmniActive”) seeks to improve lives by enhancing nutrition and wellness through science and innovation. OmniActive’s extensive portfolio consists of natural, scientifically-validated, sustainable and IP-protected ingredients for global customers in dietary supplements and functional foods and beverages.

Some of the Company’s leading brands include Lutemax, Capsimax, CurcuWIN, Gingever, Xtenergy and OmniXan. OmniActive partners with customers through its sales and distribution networks in key markets worldwide, supported by three global R&D centers and best-in-class production facilities throughout India. The Company has offices in Mumbai, India and Morristown, New Jersey.

KSSF has invested Rs. 250 crore to help promoter buy-out the B2C supplements business from OmniActive, provide dry-powder for further investment in the B2C business and provide the ability to support any future acquisitions by OmniActive. The Company has built a strong reputation and deep customer relationships and with help of KSSF investment the OmniActive team will further be able to accelerate the growth in this business.

Jindal Stainless Limited

Jindal Stainless Limited (JSL) is one of the largest stainless steel producer in India. JSL along with its sister company, Jindal Stainless Hisar Limited (JSHL) ranks amongst the top 10 stainless steel conglomerates in the world.

JSL has an integrated stainless steel manufacturing capacity located in the eastern part of India in the state of Odisha. Its current installed stainless steel manufacturing capacity is 1.1 million tons per annum, this can eventually be scaled up to 3.2 million tonnes per annum. The manufacturing complex is also equipped with a captive ferro alloy capacity.

KSSF invested Rs.500 crore in the debt and equity of JSL. This helped JSL come out of corporate debt restructuring (CDR) process and also ensured promoters equity in the company was not diluted. The CDR exit has provided financial and operational flexibility to the business. JSL can now chart out its growth and debottlenecking plans by approaching the financial markets on competitive terms.

Nuvoco Vistas Corporation

Nuvoco Vistas Corporation Limited (Nuvoco) is a leading cement manufacturer with a focus on East, West and North India. KSSF invested Rs.500 crore into convertible equity of Nuvoco to help it finance the acquisition of Emami Cement Ltd. (ECL), the cement business of the Emami Group based in Eastern India.

ECL acquisition will bring Nuvoco’s total cement capacity to more than 20 mtpa, including an ongoing capacity expansion project at its Jojobera plant. The combined operations will span three facilities in Chhattisgarh, two each in Rajasthan and West Bengal and one each in Bihar, Jharkhand, Odisha and Haryana. The acquisition consolidates Nuvoco’s position as a leading cement manufacturer in Eastern India.

Nuvoco’s product portfolio includes cement (high-performing, premium and blended varieties), ready-mix concrete (RMX) and modern building materials comprising of construction chemicals, multipurpose bonding agents as well as waterproofing agents.