The investments will help the TVS family consolidate their holdings in TVS SCS. Additionally, KSSF has invested Rs 200 crore in the form of equity in TVS SCS.
Kotak Special Situations Fund (KSSF), managed by Kotak Investment Advisors (KIAL), on Monday announced an investment of Rs 1,000 crore to back TVS Supply Chain Solutions (TVS SCS) and promoters of the TVS family in buying out the stake of private equity firm Caisse de depot et placement du Quebec (CDPQ) in TVS SCS.
Under the transaction, KSSF has financed TS Rajam Rubbers with Rs 800 crore in the form of non-convertible debentures (NCDs) to help the promoter, R Dinesh, acquire CDPQ’s stake in TVS SCS. The investments will help the TVS family consolidate their holdings in TVS SCS. Additionally, KSSF has invested Rs 200 crore in the form of equity in TVS SCS.
Srini Sriniwasan, MD of KIAL, said: “We are delighted to support the TVS group and R Dinesh in consolidating their ownership in a valuable and high growth technology-led business. This financing support demonstrates Kotak’s ability to work closely with entrepreneurs and business owners as a confidante and preferred partner to find solutions to complex issues.”
TVS SCS is a leading third-party logistics (3PL) services provider with global operations. It is suitably positioned to capture the high growth-potential market both in India and globally. The company has strong capabilities in providing supply chain solutions, freight forwarding, and last-mile logistics with long-standing relationships with marquee clients.
Eshwar Karra, CEO, Kotak Special Situations Fund at KIAL, said, “We look forward to working with R Dinesh and supporting TVS SCS leverage its strong capabilities to provide innovative supply chain technology solutions. This investment is in line with our objective of participating in growth-oriented businesses and partnering with industry leaders by offering customised solutions to fit the needs of each business and is a win-win for all.”
TVS SCS on September 1 announced that TVS family members, along with their associates, will repurchase the stake held by private equity firm CDPQ to consolidate its holdings in the company. In 2016, CDPQ had acquired a substantial minority stake in TVS SCS for Rs 1,000 crore.