UTI Mutual Fund receives payment of over Rs 12 cr from Altico Capital

UTI Mutual Fund on Friday said it has received payment of a little over Rs 12 crore from Altico Capital India, a lender to real estate companies.

Certain UTI Mutual Fund schemes had invested in debt instruments of Altico that were downgraded to below investment grade by credit rating agencies in September 2019.

Pursuant to this, UTI Mutual Fund schemes marked down their respective exposures to such instruments by 75 per cent.

"UTI Mutual Fund has received the partial payment of Rs 12.30 crore from Altico Capital India Ltd on October 8, 2020, in UTI Credit Risk Fund and certain UTI's Fixed Term Income Funds which have an exposure to the said issuer," the fund house said in a statement.

The recovery proceeds will be distributed to investors in proportion to investors' unit holdings, it added.

"This repayment shows our commitment towards our investors and we will continue our efforts in the best interest of the unit holders of our schemes," UTI MF said.

In January, the fund house had received payment to the tune of Rs 20.5 crore from Altico Capital.