Kotak Investment Advisors Ltd (KIAL), the Kotak Group's alternative assets unit, has invested Rs 732 crore ($89.3 million) in publicly listed power generation company RattanIndia Power (RIPL).
The Kotak Strategic Situations India Fund II (KSSF II) and Kotak Private Credit Fund (KPCF) have infused Rs 582 crore and Rs 150 crore respectively in RIPL, KIAL said in a statement.
“This investment is part of the total investment of Rs 1,125 crore by a consortium of lenders. The power company will utilise the proceeds to refinance its existing debt,” the statement added.
The fundraising is structured to match the expected cashflow generation and reduce overall cost helping RIPL improve its financial profile.
RIPL is a part of the RattanIndia Group promoted by Rajiv Rattan. It operates a thermal power plant with an operational capacity of 1,350 MW at Amravati, Maharashtra.
It claims to be one of the few private sector thermal power generators supplying power to Maharashtra State Electricity Distribution Company Ltd. (MSEDCL).
“The financing provided by our credit funds to RattanIndia is the first investment from our new credit funds which have participated across the capital stack for appropriate risk adjusted returns,” said Srini Sriniwasan, managing director at KIAL.
In March, KSSF II garnered $1.25 billion (approximately Rs 10,200 crore) raising three-fourth of its targeted corpus likely from marquee investors such as Abu Dhabi Investment Authority (ADIA), along with Singapore’s sovereign wealth fund GIC and PremjiInvest. The fund has a target to raise $1.6 billion to provide strategic solution capital across growth and value companies.
Meanwhile, KPCF has raised around $40 million (around Rs 330 crore) so far and has targeted a corpus of Rs 2,000 crore to focus on the performing credit space, providing debt to growth-oriented companies with established business models.
Part of billionaire Uday Kotak’s Kotak Mahindra Group, KIAL focuses on alternate assets management and investment advisory businesses managing assets of $8.8 billion. The alternative assets division was the prime driver of Kotak's overall asset management business over the last one year.
