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The promoters of Viney Corporation Pvt Ltd, an auto ancillary player in mechanical, mechatronic and electronic technologies for wiring harnesses, connectors and switches, based out of North India, have raised Rs430 crore through non-convertible debentures (NCDs) from Kotak Special Situations Fund to buy out the stake held by private equity firm Synergy Capital, said a source aware of the development.

Synergy Capital had acquired a 50.01% stake in the company in 2020.

There will be a further round of growth capital infused in Viney Corporation to the tune of Rs20 crore in the form of optionally convertible debentures (OCD), the source added.

Founded in 1992, Viney operates through 10 production facilities – eight in India and two overseas – with a combined area of over 500,000 sq. ft. Key customers of the company include BMW, Rolls Royce, GM, Maruti, Hero, Bajaj, Honda, Tata, Yamaha, Renault and Fiat.

“With this promoter stake consolidation, Viney Corporation will enter in its next phase of growth and may explore an IPO in near future,” said the source.

ICICI Securities and Dynamic Orbits Consultants were the financial advisors for the transaction, the source added.

Spokespersons for Viney Corporation and Kotak Special Situations Fund could not be immediately reached for a comment.

The company reported a revenue of Rs684 crore up to October 2022, and is expected to report revenue of around Rs 1100 crore for the fiscal 2023, rating agency Crisil noted in a December 2022 report.

For fiscal 2022, the company reported a topline of Rs1,032 crore, compared to a revenue of Rs899 crore in fiscal 2021.

The company reported a profit of Rs34.68 crore in fiscal 2022 as against a profit of Rs28.73 crore in the previous fiscal.

Kotak Special Situations Fund is managed by Kotak Investment Advisors Limited (KIAL), a part of Kotak Mahindra Group, and focuses on alternate assets management and investment advisory businesses. KIAL was set up in early 2005 and has raised/managed/advised over $8.7 billion across different asset classes including private equity, real estate, infrastructure, special situations and listed strategies.