Kotak Credit Funds invest Rs 732 crore in RattanIndia Power

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


Kotak Strategic Situations India and Kotak Private Credit Fund 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 uniquely structured to match the expected cash flow generation and reduce overall cost, which is in sync with RIPL’s improving financial profile.

“The financing provided by our credit funds to RattanIndia underscores our ability to move with agility and provide timely structured financing to meet specific needs. This 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, Kotak Investment Advisors.

“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 of Kotak Special Situations Fund.

RattanIndia Power 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 the Maharashtra State Electricity Distribution Company.

Kotak Investment Advisors, a part of Kotak Mahindra Group, focuses on alternate assets management and investment advisory businesses.

It has managed over $8.8 billion across different asset classes including private equity, real estate, infrastructure, special situations, and listed strategies. KIAL also has a significant Investment Advisory business, and all asset management and Investment Advisory businesses are managed by independent teams.

On Friday, RattanIndia Power shares closed 1% lower at Rs 5 on NSE. So far this year, the stock has rallied nearly 18%.

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