HDFC Mutual Fund, ICICI Prudential Mutual Fund get money back from Essel Group

HDFC Mutual Fund and ICICI Prudential Mutual Fund have said that they have got their repayments from the Essel Group. HDFC Asset Management Company has received Rs 167 crore and ICICI Prudential AMC has got Rs 270 crore as repayment and interest from the Essel Group.

"The company holds certain NCDs of the Essel Group that are secured by a pledge of listed equity shares. The carrying value of these NCDs as at September 30, 2019 was Rs 2,756.31 mm. The company has received a total of Rs 1,668.64 mm towards part repayment of the said NCDs and interest thereon, from the issuer through sale of certain listed equity shares comprising part of the collateral. The value of the residual pledged listed equity shares as at November 25, is Rs 1,439.54 mm," says HDFC AMC in the communication.

ICICI Prudential Mutual Fund said after the repayment that it has zero exposure to Essel Group.

"Pursuant to the sale of shareholding by the promoters of ZEEL, ICICI Prudential Mutual Fund has received repayment of the total principal amount invested along with the accrued interest thereon. Subsequently, as on date, none of the schemes of ICICI Prudential Mutual Fund have any investments in debt instruments issued by the promoter group companies of ZEEL," said a spokesperson from ICICI Prudential Mutual Fund.

Shares of Zee Entertainment Enterprises were sold on the NSE on Thursday. While the promoters are now left with just 5% stake in the company, they raised more than Rs 4,500 crore from the deals to repay lenders.