Fund houses have exposure of Rs 143.93 crore in debt papers issued by Essel Group cos: Data

Ongoing problems for Franklin Templeton Mutual Fund seem far from over. Last week, the fund house announced that non-convertible debentures (NCDs) issued by Essel Infraprojects were unable to meet the maturity obligation. The fund house has also appointed a legal counsel and is actively considering all necessary actions to maximise recovery value.

Apart from Franklin Templeton MF, other fund houses such as HDFC MF and UTI MF have total exposure of Rs 143.93 crore in debt papers issued by Essel Group companies, as on April 30, 2020 shows data from Value Research. While Franklin Templeton MF had invested in Essel Infraprojects, HDFC MF has exposure worth Rs 7.25 crore in Edisons Infrapower and Multiventures and Primat Infrapower & Multiventures — both of which are Essel Group companies. Two schemes of UTI MF have investments worth Rs 44.34 crore in Zee Learn as in April-end.