Kotak Special Situations Fund Procures 74 Percent Stake in HKR Roadways

Date:

On Wednesday, Kotak’s special situations fund (KSSF) acquired a 74 percent stake in the HKR Roadways Ltd to waver off the debt on the company. It is a construction company based in Hyderabad, which was under debt of around Rs. 700 crore. Kotak bought the company’s stake as a one-time settlement for Rs. 715 crores for clearing the loan with existing lenders. Indeed, HKR roadways were awarded a 25-year concession by the road corporation of Andhra Pradesh. This company is led by Gayatri Group and was involved in the development of the existing Hyderabad-Karimnagar-Ramagundan section of state highway 1.
The section of Hyderabad-Karimnagar-Ramagundan was under designing, construction, financing, and transferring basis. This project started in June 2014 with a distance of 207km. But, the constant delays in the substantial underperformance of traffic with the effect of preliminary estimates led the account to turn into a non-performing asset. The statement followed from Kotak investment advisors. So, the lenders offered a plan of one-time settlement to HKR Roadways for settling the dues. This may lead to a Swiss challenge auction. As the dues get paid, HKR will not be an NPA account anymore.
The sale of HKR’s 74 percent stake is considered one of the most successful funding deals in the road construction sector for KSSF. In this matter, the CEO of KSSF named Eshwar Karra, stated that they would offer a complete cash settlement and ready for pre-packaged funding solutions under IBC. The KSSF is an alternate investment fund under SEBI guidelines handled by Kotak Investment Advisors Ltd. It manages 1 billion funds with a directive to invest in special credit conditions in India for sure.

Subscribe

Popular

More like this
Related

Is Covid resurfacing or is it declining? Latest updates of India 

On Thursday, over 2000 new Covid cases were recorded...

The Khajana Mahal – the new admire of Pink city

On international museum day, Pink city got a new...

At eighty-eight, I feel eighteen again- Ruskin Bond

Life isn't about waiting for the storm to pass;...

PM Modi to attend Quad Summit

PM Modi to attend Quad Summit.PM Modi will be...