Kotak Special Situations Fund acquires 74% stake in HKR Roadways

Kotak Special Situations Fund acquires 74% stake in HKR Roadways

HKR Roadways, a special purpose vehicle owned by a consortium led by Gayatri Group, was awarded a 25-years concession by the Andhra Pradesh Road Development Corporation.

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The 207-km toll highway project commenced operations from June 2014. (Representative image)The 207-km toll highway project commenced operations from June 2014. (Representative image)
BusinessToday.In
  • May 19, 2021,
  • Updated May 19, 2021 3:42 PM IST

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

HKR Roadways, a special purpose vehicle owned by a consortium led by Gayatri Group, was awarded a 25-years concession by the Andhra Pradesh Road Development Corporation. The four-lane toll highway project of the existing Hyderabad-Karimnagar-Ramagundan section of state highway 1 was under design, build, finance, operate and transfer basis.

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"The 207-km toll highway project commenced operations from June 2014. However, due to delays in the right of way and significant under performance of traffic vis-a-vis initial estimates, the account became a non-performing asset (NPA) with all lenders," Kotak Investment Advisors said in a statement.

After Cairn Energy, Mitsui's British arm challenges India's Rs 2,400 cr retro tax demand

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

HKR Roadways, a special purpose vehicle owned by a consortium led by Gayatri Group, was awarded a 25-years concession by the Andhra Pradesh Road Development Corporation. The four-lane toll highway project of the existing Hyderabad-Karimnagar-Ramagundan section of state highway 1 was under design, build, finance, operate and transfer basis.

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"The 207-km toll highway project commenced operations from June 2014. However, due to delays in the right of way and significant under performance of traffic vis-a-vis initial estimates, the account became a non-performing asset (NPA) with all lenders," Kotak Investment Advisors said in a statement.

After Cairn Energy, Mitsui's British arm challenges India's Rs 2,400 cr retro tax demand

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