Franklin Templeton Mutual Fund received Rs 1,252.44 crore from Vodafone Idea Ltd (VIL) as the latter repaid holders of junk-rated non-convertible debentures that matured on Friday. The amount will soon be distributed among the unit-holders of the concerned segregated portfolio.
There are six schemes that had made investments in Vodafone Idea. These include Franklin India Ultra Short Bond Fund, Franklin India Low Duration, Franklin India Short Term Income Plan, Franklin India Credit Risk Fund, Franklin India Dynamic Accrual Fund, and Franklin India Income Opportunities Fund.
Majority of the bonds were held by Franklin India Ultra Short Bond Fund, which has received a payment of Rs 803.79 crore from the telco.
In a statement, the mutual fund house said, “Further to the annual interest payment received on 12 June 2020 for the security ‘8.25 per cent Vodafone Idea Ltd (10-July-2020)’ held in the following segregated portfolios, we have now received the full value of the principal due, along with interest for the period 12 June to 9 July 2020.”
It added that this is the full and final payment for this segregated portfolio and will be made by extinguishing all the outstanding units held by each unit-holder therein.
Last month, the fund house said it has received an interest payment of about Rs 103 crore from Vodafone Idea.
“The net asset value per unit (NAV) or payment price per unit (PPU) for the plans of the above schemes is computed as the total amount available for distribution in the respective plans divided by the total outstanding units in the plans,” the fund house said.
It added that the amount payable to unitholders will be the NAV or PPU multiplied by the total outstanding units that will be extinguished in settlement of the above-segregated portfolios.
In January, Franklin Templeton, which had an exposure of over Rs 2,000 crore to Vodafone Idea in six of its schemes, had marked down its investment in the securities issued by the telecom player to zero.
The fund house had marked down the schemes 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.