Essel group makes partial repayment to mutual fund houses

Essel Group raised Rs 4,200 crore by selling 11% in Zee Entertainment to global fund Invesco Oppenheimer.

Essel Group has made a partial repayment of over Rs 2,300 crore to some mutual fund houses. The group, widely referred as Zee Group, owed Rs 6,500 crore to six mutual fund houses.

Earlier in the year, mutual funds and other lenders had entered into a ‘standstill’ agreement with promoters of Essel Group to give them time till September to repay their dues. The agreement met with widespread criticism from investors. Even Sebi frowned upon the unilateral agreement made by fund houses with certain promoters.

In April this year, investors in six fixed maturity plans (FMPs) of Kotak Mutual Fund maturing between April 8 and May 31 did not get back their entire money on account of delay in repayment by Essel. HDFC Mutual Fund gave unitholders the option to roll over or extend the maturity by 380 days instead of redeeming at maturity in mid-April.


Aditya Birla Mutual Fund received the highest sum of Rs 760 crore out of the total Rs 2,500 crore due.

ICICI Prudential Mutual Fund received Rs 435 crore, 60 per cent of the total outstanding amount. Their recovery was the highest in terms of percentage of the outstanding sum.

HDFC Mutual Fund received Rs 580 crore out of Rs 1,200 crore due and Kotak Mutual Fund received Rs 599 crore, including interest payments.
ADVERTISEMENT

Subhash Chandra’s Essel Group raised Rs 4,200 crore by selling 11 per cent in Zee Entertainment to global fund Invesco Oppenheimer last month. It was expected that Zee will pay around Rs 2,600 crore to mutual funds out of this money.
Download
The Economic Times News App
for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
Download
The Economic Times News App
for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
READ MORE
ADVERTISEMENT

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Text Size:AAA
Success
This article has been saved

*

+