Kotak funds invest ₹732 crore in RattanIndia Power

New Delhi: Kotak Strategic Situations India Fund II (KSSF II) and Kotak Private Credit Fund (KPCF), managed by Kotak Investment Advisors Limited (KIAL), have invested ₹732 crore in the non-convertible debentures (NCDs) of RattanIndia Power Limited (RIPL), the company said in a release.

The investment is part of an overall ₹1,125 crore infusion by a consortium of lenders, RattanIndia said, adding that it will be deployed for refinancing debt.

KSSF II and KPCF invested ₹582 crore and ₹150 crore, respectively in RIPL. The power company will use the proceeds to refinance its existing debt.

The fundraising is structured to match the expected cash flow generation and reduce overall cost, which is in sync with RIPL’s improving financial profile, the company said.

“This is the first investment from our new credit funds, which have participated across the capital stack for appropriate risk-adjusted returns,” Srini Srinivasan, managing director at Kotak Investment Advisors, which manages KSSF and KPCF, said.

“This investment is in line with our fund’s objective of providing solution capital to businesses needing patient funding. It also underscores how KSSF II, through its experience and expertise, has structured a solution that addresses RIPL’s financial requirements,” said Eshwar Karra, CEO –Kotak Special Situations Fund at Kotak Investment Advisors Limited.

RIPL is 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 in Maharashtra, India. It is one of the few private-sector thermal power generators supplying power to Maharashtra State Electricity Distribution Company Ltd. (MSECDL).