“The interest amounting to Rs 148.75 crore due from Vodafone Idea Ltd on September 3, 2021 for the security…(Non-convertible debenture /NCD) held in the segregated portfolio of five schemes has been received,” a Franklin Templeton MF spokesperson said.
Of the six debt schemes of the fund house, which were wound up in April 2020, five schemes – Franklin India Low Duration, Franklin India Short Term Income Plan, Franklin India Credit Risk Fund, Franklin India Dynamic Accrual and Franklin India Income Opportunities funds – had made investment in the telco.
The fund house created side pockets in the five schemes holding bonds issued by Vodafone Idea in January last year, before the winding up, and various securities issued by the telecom player in the schemes were segregated from the total portfolio.
The decision was taken after the Supreme Court rejected the telecom player’s review plea related to over Rs 40,000 crore adjusted gross revenue (AGR)-related dues to the government.
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 interest amount received from the telecom player will be distributed to unitholders of the segregated portfolio.
“This payment will be made by extinguishing 8.77 per cent of the outstanding units of each unitholder in the segregated portfolio. The proportion of units to be extinguished has been derived by assuming a total repayment of Rs 1,695.84 crore (principal + interest) from the issuer,” the spokesperson said.
Investors in side pocketed units are repaid money as and when it is recovered from debt issuers.
“For units held in physical/ statement of account mode, 8.77 per cent of the outstanding unitholding as on September 3, 2021 will be extinguished towards payment and will be distributed to unitholders by September 8, 2021,” he said.
For units held in demat mode, the proportionate amount will be distributed by September 15, 2021, he added.
Earlier, Franklin Templeton MF had said that SBI Funds Management (SBI MF) will distribute the sixth tranche of over Rs 2,918 crore to unitholders of its six shuttered schemes from September 1.
Post the payout, the total disbursement will reach to Rs 23,999 crore, amounting to 95.18 per cent of assets under management (AUM) as on April 23, 2020, when the schemes were closed down.
Under the first disbursement in February, investors received Rs 9,122 crore, while Rs 2,962 crore was paid to investors in April, Rs 2,489 crore in May, Rs 3,205 crore in June and Rs 3,303 crore in July.
