Kotak Mahindra Asset Management (AMC) has paid its fixed maturity plans (FMPs) investors. A part of the payout was earlier withheld owing to a standstill agreement with Essel Group. Sources in the mutual fund industry say that Kotak MF has paid back investors around Rs 400 crore that was invested in Essel Group companies.
“We had received around Rs 200 crore from Essel group and on last Friday we sold the stocks worth Rs 190 crore which were pledged with us. Now payments has been made to investors of six FMPs which had exposure to Essel group companies,” said a senior official from the fund house. Kotak Mahindra AMC in April had informed investors that they had to withhold certain part of units in six FMPs, represented by portfolio investment in Essel Group companies.
Last week, Essel Group had sought an extension for a “few more months” to pay the remaining dues. According to the mutual funds industry participants, a few of the mutual funds have agreed to give time till end of current financial year to Essel group for the remaining payment. Several mutual funds had received payment of around Rs 2,000 crore from the Essel group on September 10.