Kotak Credit Funds invest Rs 732 crore in RattanIndia Power

Kotak Strategic Situations India Fund II (KSSF II) and Kotak Private Credit Fund (KPCF), managed by Kotak Investment Advisors Limited (KIAL), have invested Rs 732 crore in the non-convertible debentures (NCDs) of RattanIndia Power Limited (RIPL). This investment is part of the total investment of Rs 1,125 crore by a consortium of lenders.

KSSF II and KPCF invested Rs 582 crore and Rs 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 investment is in line with fund’s objective of providing solution capital to businesses needing patient funding," said Eshwar Karra, CEO –Kotak Special Situations Fund, Kotak Investment Advisors Limited, adding that it also underscores how KSSF II, through its experience and expertise, has structured a solution that addresses RIPL's financial requirements.

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