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
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement