Sanghi Industries will receive an Rs. 550 crore investment from Kotak Special Situations Fund
- ByStartupStory | December 1, 2022
Kotak Special Situations Fund (KSSF), run by Kotak Investment Advisors Limited (KIAL), announced today that it had committed 550 crore in non-convertible debentures (NCDs) to Sanghi Industries Group. From the total, KSSF put $500 million into Sanghi Industries Limited (SIL) NCDs and $50 million into a business managed by SIL’s promoters’ NCDs, which would then be infused into SIL. When KSSF is injected at the right time, operations and the company’s liquidity profile will improve, and SIL’s capital base will be rebuilt. The KSSF will invest money from a $1 billion fund. With this investment, KSSF has made over 6,300 crore in investments and completed 13 agreements.
Eshwar Karra, CEO-Kotak Special Situations Fund at Kotak Investment Advisors Limited, said, “SIL’s performance has been under pressure owing to high energy costs. This was further exacerbated by the upcoming debt repayments for the expansion capex. KSSF’s infusion terms out the debt and should correct the capital structure. It also underlines how KSSF, through its experience and expertise, has structured a solution that addresses SIL’s specific financial requirements.”
The main company of the Ravi Sanghi Group, Sanghi Industries Limited (SIL), manufactures and sells cement under the trade name “Sanghi Cement.” The business is a well-known cement manufacturer in India with a sizable presence in Gujarat.
The Board of Directors of SIL also informed stock exchanges today by saying that “We would like to inform you that at the meeting of the Business Operations and Finance Committee of the Board of Directors of the Company held today i.e. on Tuesday, 29th November, 2022, the Business Operations and Finance Committee of the Board of Directors of the Company has inter alia approved the allotment of 5000 (Five Thousand) Secured, Unrated, Unlisted, Redeemable, Non-Convertible Debentures (NCDs) totally aggregating to Rs. 500,00,00,000/- (Rupees Five Hundred Crores Only) having face value of Rs. 10,00,000/- (Rupees Ten Lakh Only) each on Private Placement basis, to the applicant.” The NCD will close on November 28, 2025, and allotments will be made on November 29, 2022. The debenture has a 36-month term and a 12% annual coupon rate that is paid on a monthly basis.
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