Mutual fund schemes, which had segregated their Vodafone Idea Ltd exposure in side pockets, on Friday breathed a sigh of relief as they received both principal and interest payments from the debt ridden telecom firm.
Vodafone Idea cumulatively paid out ₹2850 crore to 7 bond holders including mutual funds and banks.
While the side pockets of Franklin Templeton India schemes have received ₹1252 crore, UTI Mutual Fund has received ₹166 crore and Nippon India Mutual Fund has received ₹121 crore.
These part payment will be credited in investors’ accounts in the coming week, said officials of these fund houses.
Side pocket or a segregated portfolio, ensures money invested in mutual fund debt schemes, linked to stressed assets, gets locked until the fund recovers the cash from the company.
“We have now received the full value of the principal due, along with interest for the period 12 June to 9 July 2020,” said a spokesperson for Franklin Templeton in a statement.
“This amount will be distributed to unit holders of the segregated portfolio as detailed below. This is the full and final payment for this segregated portfolio and will be made by extinguishing all the outstanding units held by each unit holder therein,” he added.
Nippon India in the statement said that they have received 100% of their outstanding from Vodafone which is ₹121 crore.
The payout shall be processed by extinguishing proportionate units in the plans of the segregated portfolio of respective schemes.
Earlier on 12 June the fund houses had received interest payments from Vodafone to the tune of ₹102.71 crore in case of Franklin, UTI Mutual Fund and Nippon India Mutual Fund have also cumulatively received ₹13.5 crore and ₹9.3 crore respectively.