HDFC AMC shares drop nearly 7% to Rs 1,807

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Published: June 19, 2019 1:43:21 AM

According to the portfolio disclosure as on March 2019, HDFC Fixed Maturity Plan — 1168 days — February 2016 (1) which was extended by over a year have invested around Rs 66.49 crore in Edisons Infrapower & Multiventures and Spirit Infrapower & Multiventures, group companies of Essel.

HDFC, HDFC AMC, HDFC AMC share, HDFC amc share price, HDFC amc  news, HDFC amc  ipo, HDFC amc share newsHDFC AMC shares drop nearly 7% to Rs 1,807 (File)

Shares of HDFC Asset Management Company fell by 6.32% or Rs 122 and closed at Rs 1,807.75 on Tuesday, a day after the fund house announced that it was making provision of upto Rs 500 crore to provide liquidity to unit holders of its fixed maturity plans (FMPs) due to their exposure to the non-convertible debentures (NCDs) issued by firms promoted by Essel Group.

HDFC AMC in its filing on Monday said, “This liquidity arrangement shall only apply in case of FMP schemes (having an exposure to the NCDs issued by the Essel Group Companies) which have either already matured in the month of April, 2019 and/ or will mature till the standstill arrangement entered into by the company with Essel Group Companies is in force.” It also stated that provision of such liquidity arrangement will entail acquisition by the company of NCDs issued by the Essel Group Companies held by such FMP schemes at the prevailing valuation as on respective maturity/purchase dates. The liquidity arrangement may involve an aggregate outlay not exceeding Rs 500 crore and will be put in place shortly.

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According to the portfolio disclosure as on March 2019, HDFC Fixed Maturity Plan — 1168 days — February 2016 (1) which was extended by over a year have invested around Rs 66.49 crore in Edisons Infrapower & Multiventures and Spirit Infrapower & Multiventures, group companies of Essel. Before that, Kotak Mutual Fund had conveyed to its investors that the fund may not be able to pay entire redemption amount for the Kotak FMP Series 127, which got matured on April 8. Industry players estimate MFs have exposure of around `6,000-7,000 crore to debt instruments of Essel Group companies.

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