Nagpur: Nagpur-based firm Jayaswal Neco Industries Ltd (JNIL) has successfully secured a substantial ₹3,200 crore in debt through a strategic investment led by Kotak Strategic Situations India Fund II. The investment, facilitated by the acquisition of non-convertible debentures (NCDs), is a significant move for JNIL.
In an official announcement made on Thursday, Kotak Alternate Asset Managers revealed that KSSF II spearheaded the investment by injecting ₹1,500 crore into JNIL. This infusion of funds is earmarked to support the company in refinancing its existing debt, which stands at ₹3,200 crore. KSSF II, operating from its $1.25 billion fund, played a pivotal role in this financial maneuver.
Eshwar Karra, the CEO of Kotak Strategic Situations India Fund at Kotak Alternate Asset Managers, expressed satisfaction in taking the lead on the debt refinancing initiative. He emphasized that the investment aligns seamlessly with the fund’s overarching goal of providing solution capital to businesses exhibiting positive growth prospects.
Karra stated, “We strongly believe that the Indian steel sector and the commercial vehicles segment will be the key drivers to India’s continuing growth in the future.”
According to Rahul Chhaparwal, a partner at Kotak Strategic Situations India Fund, this substantial investment will furnish JNIL with the much-needed financial flexibility required for sustained long-term growth.
JNIL, spearheaded by Arvind Jayaswal and Ramesh Jayaswal, boasts interests in the specialty auto-grade alloy steel segment, with a primary focus on the commercial vehicles sector. The company operates a fully integrated steel plant in Chhattisgarh with an annual capacity of 1 million tonnes. Notably, Jayaswal Neco Industries was among the 28 companies included in the Reserve Bank of India’s second list of defaulters sent to banks in 2017 for debt resolution.
