Kotak Special Situations Fund (KSSF) – managed by Kotak Investment Advisors Limited (KIAL), on Wednesday announced that it has invested ₹410 crore in DCW Limited (DCW) in the form of debentures.

“KSSF has invested in the form of non-convertible debentures and optionally convertible debentures (OCDs) in DCW,” it said in a statement, adding that on conversion, the OCDs will result in an 11 per cent stake in DCW for KSSF.

KSSF funding will help DCW to refinance its existing term loans, improve its working capital, enhance its capacity utilisation to meet the growing demand for its products and scale up the specialty chemicals operations, it further said.

Srini Sriniwasan, Managing Director, Kotak Investment Advisors Limited, said, “This investment is in line with our ability to provide unique and flexible capital solutions which are not ordinarily available in the ecosystem.”

KSSF has been investing from its $1-billion fund in a variety of structured investment situations.

Eshwar Karra, CEO, KSSF, said, “Our financing facility will help DCW chart its growth as a leading specialty chemicals player. DCW now has financial flexibility and liquidity to achieve long-term growth.”

DCW manufactures PVC, C-PVC (chlorinated polyvinyl chloride), caustic soda, soda ash and SIOP (synthetic iron oxide pigment).