Franklin’s five schemes received interest payment of Rs 146.02 crore from Vodafone Idea Ltd for its NCD maturing in 2023. This was side pocketed in January this year
Vodafone Idea continues to be a good NCD issuer to the mutual fund investors. The embattled fund-house Franklin Templeton MF has said registered bank account of unitholders in 5 schemes with Vodafone-Idea side pocket have been credited with proportionate entitlement of the Rs 146.02 crore money received from the telecom major.
Six schemes of the fund-house are under winding up mode. Out of the six, five schemes at present have side pockets related to Vodafone Idea exposure. These five are Franklin India Low Duration, Franklin India Short Term Income Plan, Franklin India Credit Risk, Franklin India Dynamic Accrual and Franklin India Income Opportunities.
Franklin Ultra Short scheme did not have any Vodafone-Idea side pocket currently, as it was paid out by the telecom major upon its maturity in July.
“Payment of INR 146.02 crores received from Vodafone Idea Ltd. on 3 Sep 2020 for the security ISIN INE669E08318 held in the segregated portfolio of 5 schemes has been credited to the registered bank account of unitholders in proportion to their entitlement. In the absence of a registered bank account, a physical instrument will be dispatched,” Franklin Templeton MF said.
The Vodafone-Idea debt security ISIN INE669E08318 is set for maturity in September 2023. Investors may recall that even this security, 10.9% Vodafone Idea, was previously fair-valued at zero.
Franklin had received the Rs 146 crore as interest payment from telecom major on September 3.
In July, the six schemes under winding up had received full value of principal due, along with interest for a security ‘8.25% Vodafone Idea (10-July-2020)’ held in the segregated portfolios of these six schemes. This amount (Rs 1,250 crore) was distributed to unitholders of the segregated portfolio after extinguishing underlying units. Investors may recall that this security, 8.25% Vodafone Idea, was previously fair valued at zero.
In June, Vodafone Idea had also paid dues (over Rs 100 crore) to FT schemes and shortly this amount was credited to eligible investors.
You would recall that with effect from 24 January, various securities issued by Vodafone Idea in the six debt schemes of Franklin were segregated from their respective total portfolio. These securities had already been marked down to a value of zero on 16 January 2020 for debt that was worth Rs 2,000 crore at that time.
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