Schemes of leading fund house ICICI Prudential Mutual Fund have received repayment of the total principal amount invested along with the accrued interest, post the the sale of shareholding by the promoters of Zee Entertainment. Two debt schemes of the fund house had investments worth over Rs 268 crore secured by a pledge of equity shares of Zee as on October 31, 2019.
As on October 31, 2019, two debt schemes of ICICI Prudential Mutual Fund had investments secured by a pledge of equity shares of Zee Entertainment. ICICI Prudential Credit Risk Fund had exposure to Jay Properties Private Ltd. The exposure worth Rs 177.4 crore was 1.56% of NAV. ICICI Prudential Medium Term Bond Fund had Rs 91.2 crore exposure to Bioscope Cinemas Private Ltd., with 1.49% of NAV being the percentage amount of exposure.
“Pursuant to the sale of shareholding by the promoters of Zee Entertainment, the above schemes of ICICI Prudential Mutual Fund have received repayment of the total principal amount invested along with the accrued interest thereon. Subsequently, none of the schemes of ICICI Prudential Mutual Fund have any investments in debt instruments issued by the promoter group companies of Zee Entertainment,” says an update from ICICI Pru MF.
Separately, other AMCs have also provided update to Zee/Essel group exposure. HDFC Asset Management recently announced it has received some money towards part repayment of the Zee/Essel NCDs and interest thereon, from the issuer through the sale of certain listed equity shares comprising part of the collateral.
While Aditya Birla Sun Life AMC also received some money, Aditya Birla Sun Life, unfortunately, had to create side pockets in three schemes i.e. Aditya Birla Sun Life Medium Term Plan, Aditya Birla Sun Life Credit Risk Fund and Aditya Birla Sun Life Dynamic Bond Fund; these three schemes had a combined exposure of over Rs 790 crore to Zee/Essel group entity Adilink Infra & Multitrading Private Limited. With Adilink defaulting to the same security issued by it to another bondholder on November 25, 2019, Aditya Birla Sun Life MF was forced to join the side-pocket bandwagon.