Markets

Birla MF gets Rs 840 cr from Zee share sale

Suresh P Iyengar Mumbai | Updated on November 27, 2019 Published on November 27, 2019

Aditya Birla Sun Life Mutual Fund has received Rs 840 crore as its share from the sale of Zee Entertainment shares.

Earlier, ICICI Pru Mutual Fund and HDFC Mutual Fund had received Rs 437 crore in payments from the Subhash Chandra-promoted Essel Group.

On Wednesday, Aditya Birla Sun Life Mutual Fund said pursuant to the sale of the shareholding of Zee Entertainment, it has received repayment to the tune of Rs 840 crore, comprising the principal amount and interest accrued.

However, Birla Mutual Fund on Tuesday side pocketed an investment of ₹793 crore made in Essel Group company, Adilink Infra & Multitrading, as it had defaulted on a payment.

Share sale proceeds

Meanwhile, ICICI Prudential MF has got Rs 270 crore as repayment and interest from the Essel Group, while the same for HDFC MF was pegged at Rs 167 crore.

With this repayment, ICICI Prudential Mutual Fund has recovered its entire învestment in the troubled Essel Group.

However, HDFC MF said the company holds certain non-convertible debentures of the Essel Group that are secured by a pledge of listed equity shares. The carrying value of these NCDs as of September-end was Rs 275.63 crore.

Debt-laden Essel Group had sold 16.5 per cent stake in its flagship ZEE Ltd to financial creditors to meet its loan repayment obligations.

In September, the group sold 11 per cent stake in ZEE to the Invesco-Oppenheimer fund for over Rs 4,224 crore and then retired debt worth Rs 4,000 crore.

Atlanta-based Invesco has owned 7.74 per cent stake in ZEE since 2002.

The promoter and promoter group shareholding in the company went down to 22.37 per cent in the quarter ended September 30, from 35.79 per cent in the quarter ended June 30.

Published on November 27, 2019
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