MFs' Essel group exposure likely to fall by 30-50% after Zee stake sale

Zee stake sale to Oppenheimer would benefit MFs holding the firm's shares as collateral

The mutual fund (MF) players are expecting the proceeds from the Zee-Oppenheimer deal to significantly reduce their outstanding debt exposures to the Essel Group entities. According to people in the know, the deal could potentially reduce MFs’ exposure to the group entities by 30-50 percent.  

Sources suggest that the fall in exposure would depend upon whether the MFs’ exposure is pledged by Zee shares or any other group company.

“We will see our exposure to the Essel Group go down by half, as our exposure was pledged by Zee shares. From Rs 1,500 crore, we should see it fall to