Kotak MF pays back investors Rs 400 crore invested in Essel Group

By: |
Published: September 26, 2019 1:06 AM

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.

Last week, Essel Group had sought an extension for a “few more months” to pay the remaining dues.Last week, Essel Group had sought an extension for a “few more months” to pay the remaining dues.

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.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, 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
1Companies post worst profit decline in a decade, but market analysts are happy about it
2ICICI Bank closes QIP after raising Rs 15,000 crore; sells shares at 1.9% premium to floor price
3How new-age banking solution geared with AI can help make wise investment decisions