DSP Mutual Fund has written off 50 per cent of its investment in the non-convertible debenture (NCD)issued by the subsidiary of Coffee Day Enterprises (CDEL).
DSP Credit Risk Fund had invested in the NCD issued by Coffee Day Natural Resources Pvt Ltd (CDNRPL). The fund has an exposure to secured NCD issued by CDNRPL with face value of ₹69 crore as on July 29.
CDNRPL is one of the companies owned by the promoter of Coffee Day Enterprises. The exposure is secured by a pledge of listed shares of Coffee Day Enterprises and a land parcel, said DSP MF.
The recent fall in share price has reduced the value of cover provided by the issuer. CDEL has asked for two weeks to come up with a concrete plan regarding the exposure, the fund house said.
“While we await the CDEL plan, erosion in value of cover merits to revisit the scheme’s exposure in the CDNRPL. Hence, we have taken 50 per cent haircut on our exposure,” said DSP MF.“DSP Investment Managers is taking appropriate measures to protect the interest of investors.”
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.