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Vodafone Idea paid Rs. 1,252 crore to Franklin Templeton MF

Franklin Templeton Mutual Fund told that it has received a payment of around of Rs 1,252 crore from Vodafone Idea Ltd on Friday, which will be distributed among with investors of the segregated portfolios as well.

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There are six schemes i.e. Franklin India Ultra Short Bond Fund, Franklin India Low Duration, Franklin India Short Term Income Plan, Franklin India Credit Risk Fund, Franklin India Dynamic Accrual Fund, and also Franklin India Income Opportunities Fund — that had made investments in Vodafone Idea as well.

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The creation of the segregated portfolios is a mechanism to separate distressed, illiquid, and also hard-to-value assets from other more liquid assets in a portfolio.

“We wish to inform you that further to the annual interest payment that received on 12th June 2020, for the security ‘8.25 percent Vodafone Idea Ltd (i.e. July 10, 2020)’ held in the segregated portfolios, we have now received the full value of the principal due, along with the interest for the period 12th June to 9th July 2020,” as the fund house told.

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A total of Rs 1,252.44 crore has been received, which will be distributed to unitholders of the segregated portfolio, it added.

Last month, the fund house ideally told that it has received an interest payment of about of Rs 103 crore from Vodafone Idea as well.

“The net asset value per unit (i.e. NAV) or payment price per unit (i.e. PPU) for the plans of the above schemes is also computed as the total amount available for the distribution in the respective plans that divided by the total outstanding units in the plans as well,” as the fund, house told.

In January, Franklin Templeton, which had an exposure of over around Rs 2,000 crore to Vodafone Idea in six of its schemes, had marked down its investment in the securities issued by the telecom player to zero.

The fund house had marked down the schemes after the Supreme Court rejected the telecom player’s review plea related to over around Rs 40,000 crore adjusted gross revenue (i.e. AGR)-related dues to the govt.

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