Kotak Special Situations Fund (KSSF) on Monday announced an investment of Rs 1,000 crore in TVS Supply Chain Solutions Limited (TVS SCS). "Under the transaction, KSSF has financed TS Rajam Rubbers Private Limited with Rs 800 crore in the form of non-convertible debentures (NCDs) to help the promoter, R Dinesh acquire CDPQ's stake in TVS SCS," Kotak said in a release.
"The investments will help the TVS family consolidate their holdings in TVS SCS. Additionally, KSSF has invested Rs 200 crore in the form of equity in TVS SCS," it added.
Srini Sriniwasan, Managing Director, Kotak Investment Advisors Limited (KIAL) said, “We are delighted to support the TVS group and R Dinesh in consolidating their ownership in a valuable and high growth technology led business. This financing support demonstrates Kotak's ability to work closely with entrepreneurs and business owners as a confidante and preferred partner to find solutions to complex issues.”
KSSF is an alternative investment fund under SEBI regulations managed by Kotak Investment Advisors Ltd. And, KIAL is a part of the Kotak Mahindra Bank and focuses on the alternate assets business.
The company claims that it has strong capabilities in providing supply chain solutions, freight forwarding and last mile logistics with long standing relationships with marquee clients.
Eshwar Karra, chief executive officer of Kotak Special Situations Fund at KIAL said, “This investment is in line with our objective of participating in growth-oriented businesses and partnering with industry leaders by offering customised solutions to fit the needs of each business and is a win-win for all.”
KSSF is managed by Kotak Investment Advisors and TVS SCS is a third party logistics services provider.
Kotak stated that the investment is suitably positioned to capture the high growth potential market both in India and globally.