Fund houses take differing stance on Vodafone-Idea AGR-related debt

Experts say not taking markdown can benefit savvy investors that exit exposed schemes

The Supreme Court's decision on Thursday to reject review plea of telecom companies on additional gross revenue or AGR-related dues has led to differential treatment by funds houses, with some schemes taking 100 per cent mark down on their debt exposure to Vodafone Idea, while some schemes yet to take a call on whether the asset needs to be re-valued in anticipation of a likely default or rating action.  

On Thursday, Franklin Templeton MF, which has Rs 2,073 crore of exposure to Vodafone Idea (as of December 31, 2019) in six of its schemes, marked down the exposure to zero