HKR Roadways: Kotak Special Situations Fund acquires 74% stake
ROADS & HIGHWAYS

HKR Roadways: Kotak Special Situations Fund acquires 74% stake

Kotak Special Situations Fund (KSSF) on Wednesday told the media it has acquired a 74% stake in HKR Roadways Ltd, and funded the debt in the company for a one-time settlement with existing lenders for a total consideration of Rs 715 crore.

The Andhra Pradesh Road Development Corporation awarded a 25-year concession to HKR Roadways, a special purpose vehicle owned by a consortium led by Gayatri Group.

The four-lane toll highway project of the existing Hyderabad-Karimnagar-Ramagundam section of state highway-1 (SH-1) was under design, build, finance, operate, and transfer (DBFOT).

The 207 km toll highway project began operations in June 2014. However, due to right-of-way delays and significant underperformance of traffic compared to initial estimates, the account became a non-performing asset (NPA) with all lenders.

The existing consortium of HKR's lenders has approved a one-time settlement of all outstanding debts, subject to a Swiss Challenge auction. Following the payment of outstanding debts, HKR Roadways will no longer be a non-performing asset (NPA).

This is KSSF's first successful funding and debt resolution in the road sector. HKR requires additional capital expenditures to reach the commercial operation date, and we anticipate a turnaround in the coming years. As and when the rules are notified, KSSF will continue to offer a full cash settlement, which is a much better option than non-cash options, and is fully prepared to fund pre-packaged solutions under IBC .

KSSF is a SEBI-regulated alternative investment fund managed by Kotak Investment Advisors Ltd (KIAL), a subsidiary of Kotak Mahindra Bank that focuses on alternative assets. KSSF currently manages a $1 billion fund in India with a mandate to invest in special situations, credit, and distressed assets.

Image Source


Also read: Kotak Special Situations Fund set to secure Rs 700 cr road deal

Also read: Kotak to launch $800 mn infra fund to invest in projects across India

Kotak Special Situations Fund (KSSF) on Wednesday told the media it has acquired a 74% stake in HKR Roadways Ltd, and funded the debt in the company for a one-time settlement with existing lenders for a total consideration of Rs 715 crore. The Andhra Pradesh Road Development Corporation awarded a 25-year concession to HKR Roadways, a special purpose vehicle owned by a consortium led by Gayatri Group. The four-lane toll highway project of the existing Hyderabad-Karimnagar-Ramagundam section of state highway-1 (SH-1) was under design, build, finance, operate, and transfer (DBFOT). The 207 km toll highway project began operations in June 2014. However, due to right-of-way delays and significant underperformance of traffic compared to initial estimates, the account became a non-performing asset (NPA) with all lenders. The existing consortium of HKR's lenders has approved a one-time settlement of all outstanding debts, subject to a Swiss Challenge auction. Following the payment of outstanding debts, HKR Roadways will no longer be a non-performing asset (NPA). This is KSSF's first successful funding and debt resolution in the road sector. HKR requires additional capital expenditures to reach the commercial operation date, and we anticipate a turnaround in the coming years. As and when the rules are notified, KSSF will continue to offer a full cash settlement, which is a much better option than non-cash options, and is fully prepared to fund pre-packaged solutions under IBC . KSSF is a SEBI-regulated alternative investment fund managed by Kotak Investment Advisors Ltd (KIAL), a subsidiary of Kotak Mahindra Bank that focuses on alternative assets. KSSF currently manages a $1 billion fund in India with a mandate to invest in special situations, credit, and distressed assets. Image SourceAlso read: Kotak Special Situations Fund set to secure Rs 700 cr road dealAlso read: Kotak to launch $800 mn infra fund to invest in projects across India

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code