Franklin Templeton Mutual Fund has mentioned it acquired a fee of practically Rs 149 crore from Vodafone Idea Ltd as curiosity on its securities funding, which can be distributed amongst traders of the segregated portfolios.
“The interest amounting to Rs 148.75 crore due from Vodafone Idea Ltd on September 3, 2021 for the security…(Non-convertible debenture /NCD) held in the segregated portfolio of five schemes has been received,” a Franklin Templeton MF spokesperson mentioned.
Of the six debt schemes of the fund home, which had been wound up in April 2020, 5 schemes — Franklin India Low Duration, Franklin India Short Term Income Plan, Franklin India Credit Risk Fund, Franklin India Dynamic Accrual and Franklin India Income Opportunities funds — had made funding within the telco.
The fund home created aspect pockets within the 5 schemes holding bonds issued by Vodafone Idea in January final 12 months, earlier than the winding up, and numerous securities issued by the telecom participant within the schemes had been segregated from the full portfolio.
The determination was taken after the Supreme Court rejected the telecom participant’s evaluation plea associated to over Rs 40,000 crore adjusted gross income (AGR)-related dues to the federal government.
Creation of segregated portfolios is a mechanism to separate distressed, illiquid and hard-to-value belongings from different extra liquid belongings in a portfolio.
The curiosity quantity acquired from the telecom participant can be distributed to unitholders of the segregated portfolio.
“This payment will be made by extinguishing 8.77 per cent of the outstanding units of each unitholder in the segregated portfolio. The proportion of units to be extinguished has been derived by assuming a total repayment of Rs 1,695.84 crore (principal + interest) from the issuer,” the spokesperson mentioned.
Investors in aspect pocketed models are repaid cash as and when it’s recovered from debt issuers.
“For units held in physical/ statement of account mode, 8.77 per cent of the outstanding unitholding as on September 3, 2021 will be extinguished towards payment and will be distributed to unitholders by September 8, 2021,” he mentioned.
For models held in demat mode, the proportionate quantity can be distributed by September 15, 2021, he added.
Earlier, Franklin Templeton MF had mentioned that SBI Funds Management (SBI MF) will distribute the sixth tranche of over Rs 2,918 crore to unitholders of its six shuttered schemes from September 1.
Post the payout, the full disbursement will attain to Rs 23,999 crore, amounting to 95.18 per cent of belongings beneath administration (AUM) as on April 23, 2020, when the schemes had been closed down.
Under the primary disbursement in February, traders acquired Rs 9,122 crore, whereas Rs 2,962 crore was paid to traders in April, Rs 2,489 crore in May, Rs 3,205 crore in June and Rs 3,303 crore in July.
