PE: Kotak Fund and Motilal Oswal PE to invest Rs 850 Crores in VVDN Technologies
- Kotak Special Situations Fund, Kotak Pre-IPO Opportunities Fund and India Business Excellence Fund IV (Motilal Oswal PE) have agreed to invest Rs 850 Crore in VVDN Technologies through a mix of secondary share purchases of equity shares and subscription to compulsorily convertible debentures of VVDN Technologies. The transaction should be closed in March 2023.
- The Competition Commission of India has approved the stake acquisition in VVDN Technologies by Kotak Funds and IBEF-IV. The deal has been cleared under the green channel route.
About VVDN Technologies:
- VVDN Technologies is into providing electronic manufacturing services (EMS) and original design manufacturing (ODM) space with global operations and experience of over decade.
- VVDN focuses on their next technology innovation in the space of 5G, Wireless, and AI/ML on Vision-based solutions, IoT, Cloud & Apps.
About Kotak Special Situations Fund:
- In 2005, Kotak Investment Advisors Limited was set up as the Group’s Alternate Assets practice with its first structured third party private equity and real estate funds.
- Kotak Special Situations Fund (KSSF) and Kotak Pre-IPO Opportunities Fund (KPIOF) are collectively referred to as Kotak Funds. They are engaged in the business of investments to achieve a long-term capital while IBEF-IV (India Business Excellence Fund IV) is a SEBI-registered alternative investment fund.
- The Pollachi factory is a precursor to a massive 100 acres manufacturing plant that VVDN will set up in Pollachi as per the MoU signed with the TN Govt. and the commitment to invest $100M over the next 5 years in the country.
- As per Kotak funds, the VVDN is positioned well to benefit from high growth potential of Indian and global electronics markets.
- EMS/ODM industries are in the limelight recently due to government focus on make in India and China + 1 strategy of global players. Listed EMS companies have given strong returns in post covid period. This sector will continue to receive interest in coming years. Recently Foxconn and Vedanta have announced India’s first semiconductor unit to be set up in Gujarat at investment of over $20 Billion.
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