Kotak Special Funds invests Rs 410 Crore in DCW

Kotak Special Situation Funds (KSSF) on Wednesday, March 17 announced that it has invested Rs 410 crore in DCW Limited (DCW) in the form of debentures. 

The current investment is in the form of non-convertible debentures (NCDs) and optionally convertible debentures (OCDs) and it will result in a 11 per cent stake for KSSF in DCW on successful conversion of OCDs.

The chemical specialty firm is likely to use the funding from KSSF 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 said in a release.

DCW is engaged in production of specialty chemicals and is also the market leader of chemicals such as C-PVC (chlorinated polyvinyl chloride) and SIOP (synthetic iron oxide pigment).

“We look forward to play 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", said Eshwar Karra - CEO at KSSF. 

KSSF is managed by KIAL (Kotak Investment Advisors Limited) and the company has carried out their second investment of the current month. Earlier, KSSF acquired Prius for a deal of Rs 450 crore. The company is investing in a variety of situations via its USD 1 billion fund.