 "Voda Idea, Vodafone Idea")
Franklin Templeton Mutual Fund on Friday said it has received Rs 1,398 crore as payment from Vodafone Idea for investment in its debt instruments, which will be distributed among investors of the segregated portfolios.
The amount will be given to unitholders in proportion to their holdings in the plans of the segregated portfolio.
"We have received the annual interest amounting to Rs 148.34 crore and the full value of the principal due on maturity amounting to Rs 1,250 crore from Vodafone Idea Ltd for the security (non-convertible debenture) on September 1, 2023, and held in the five segregated portfolios," the fund house said in a statement.
The five segregated portfolios are -- Franklin India Low Duration, Franklin India Short Term Income Plan, Franklin India Credit Risk, Franklin India Dynamic Accrual, and Franklin India Income Opportunities Fund. These schemes had made investments in Vodafone Idea..
Franklin Templeton MF side-pocketed its exposure in the telecom player and in January 2020, various securities issued by Vodafone Idea in the schemes were segregated from the total portfolio.
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The creation of segregated portfolios is a mechanism to separate distressed, illiquid, and hard-to-value assets from other more liquid assets in a portfolio.
The record date for the units held in demat mode will be September 8, the fund house said.
Last month, SBI Funds Management Ltd announced that it completed the liquidation of assets in the six shuttered debt schemes of Franklin Templeton Mutual Fund and distributed Rs 27,508 crore to the latter's unitholders..
Franklin Templeton in April 2020 announced the shutting down of the six debt mutual fund schemes, citing redemption pressures and lack of liquidity in the bond market.
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