PE: Kotak Fund and Motilal Oswal PE to invest Rs 850 Crores in VVDN Technologies
Transaction:
- 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.
Rationale:
- 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.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.
This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction.
#mergersandacquisitions #privateequity #ipo #debt #debtsyndication #valuations #rating #creditrating #financeadvisory #finance #economy #indianeconomy #fundraising #capitalmarket #capital #banking #m&a #ma #pe #initialpublicoffer #businessloan #loan #businessvaluation #registeredvaluer #acquisition #merger #deals #financialdeals #ahmedabad #gujarat #india #ratingadvisory#primarymarket #secondarymarket #mergersandacquisitionsahmedabad #maahmedabad #privateequityahmedabad #ipoahmedabad #financeadvisoryahmedabad #stockmarket