Let me clarify that Kotak Special Situations Fund has invested Rs.500 crore in Nuvoco, an arm of Nirma Ltd. Nirma used to be a listed company but had opted to delist from the Indian bourses. Nuvoco is the unit of Nirma buying into Emami Cements. This investment is meant to fill up the funding gap that Nuvoco is facing to see the deal through quickly.

Kotak Special Situations Fund manages around Rs.7600 crore. Kotak is the advisor to the transaction and this finance was arranged remotely by Kotak to see through the transaction. The idea is that Nuvoco can finalize the acquisition quickly and consolidate its position in the cement industry. This could also set the stage for an IPO by Nuvoco at a later stage.