HDFC AMC shares fall nearly 7% after fund house takes Essel Group’s exposures on its books

By: |
June 18, 2019 1:52 PM

Shares of HDFC Asset Management Company fell nearly 7 per cent Tuesday as the firm decided to provide liquidity to certain fixed maturity plan schemes of HDFC MF to deal with cash crunch.

Sensex, Nifty slip, sensex highs, RBI monetary policy, sensex Selling pressure, Nifty, RBI, Monetary Policy Committee, Shaktikanta Das, rbi policy rate, Inflation, oilThe NCDs were issued by Edisons Infrapower & Multiventures and Sprit Infrapower & Multiventures.

Shares of HDFC Asset Management Company fell nearly 7 per cent Tuesday as the firm decided to provide liquidity to certain fixed maturity plan schemes of HDFC MF to deal with cash crunch. In a BSE filing on Monday, HDFC AMC said it has decided to provide a liquidity arrangement to certain fixed maturity plan schemes of HDFC MF to deal with the illiquidity faced by such FMP schemes due to their exposure to NCDs issued by Essel Group firms. The NCDs were issued by Edisons Infrapower & Multiventures and Sprit Infrapower & Multiventures.

The scrip tanked 6.66 per cent to Rs 1,801.05 on the BSE. At the NSE, shares plunged 6.81 per cent to Rs 1,800. In recent months, the mutual fund industry has been grappling with redemption pressure in the wake of debt crisis at various groups, including IL&FS, Essel and DHFL.

Also read: Investors continue to dump Jet Airways shares; stock further tanks 15 per cent

This liquidity arrangement shall only apply in case of FMP schemes which have either already matured in April, 2019 and/or will mature till the standstill arrangement entered into by the company with Essel Group companies is in force, it said. “The liquidity arrangement may involve an aggregate outlay not exceeding Rs 500 crore and will be put in place shortly,” the filing added. Such liquidity arrangement is in the larger long-term interest of the company and is being undertaken purely as a measure to provide liquidity to the relevant unit holders, it said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Private investment to trickle in once capacity utilisation goes beyond 75 pc: Uday Kotak
2Sensex, Nifty turn negative for 2021; will bear attack continue till budget? Here’s what experts say
3TCS 3rd most-valued IT services brand globally, closes gap behind IBM: Brand Finance