Kotak Special Situations Fund Invests Rs 410 Cr in DCW Ltd

Mumbai, March 17 Kotak Special Situations Fund (KSSF) -- managed by Kotak Investment Advisors Limited (KIAL), on Wednesday announced that it has invested Rs 410 crore in DCW Limited (DCW) in the form of debentures.

KSSF has invested in the form of non-convertible debentures (NCDs) and optionally convertible debentures (OCDs) in DCW. On conversion, the OCDs will result in an 11 per cent stake in DCW for KSSF.

KSSF funding will help DCW to refinance its existing term loans, improve its working capital, enhance its capacity utilization to meet with the growing demand for its products and scale up the specialty chemicals operations. KSSF has been investing from its $ 1 billion fund in a variety of structured investment situations.

DCW manufactures PVC, C-PVC (chlorinated polyvinyl chloride), caustic soda, soda ash and SIOP (synthetic iron oxide pigment). It is a market leader in specialty chemicals like C-PVC and SIOP.

Srini Sriniwasan, Managing Director, Kotak Investment Advisors Limited, said, "This investment is in line with our ability to provide unique and flexible capital solutions which are not ordinarily available in the ecosystem. We believe that DCW Limited, with its expertise and a strong focus on differentiated product line-up like SIOP and C-PVC, is well poised to capture the rapid growth in the speciality chemical industry."

Eshwar Karra, CEO -- Kotak Special Situations Fund at Kotak Investment Advisors Limited, said, "We look forward to playing an active role in helping DCW achieve its long term vision. Our financing facility will help DCW chart its growth as a leading specialty chemicals player. DCW now has financial flexibility and liquidity to achieve long term growth."

Kotak Investment Advisors Limited (KIAL), a part of the Kotak Mahindra Bank Limited, focuses on the Alternate Assets business of the Group.