The six debt schemes being wound up by Franklin Templeton India received ₹6,486 crore from maturities, pre-payments and coupons till August-end.
The debt funds were suspended from trading on April 24 due to heavy redemption pressure.
These funds had got ₹2,206 crore last month alone with another two funds — Franklin India Low Duration and Credit Risk Fund — turning cash-positive. In all, four of these schemes have become cash surplus as they completely repaid the loan availed for meeting redemption before trading was suspended.
A large portion of the inflow in August came from Vedanta Ltd. Borrowing levels in the balance two schemes continue to steadily come down, said Sanjay Sapre, President, Franklin Templeton Asset Management (India).
“I wish to reiterate that the cash flows received so far are without the ability to efficiently monetise assets. The schemes will endeavour to accelerate monetisation post the successful completion of the e-voting exercise and the unit holders meet, which can take place only after the completion of the legal process,” he said.
Payments as scheduled
Based on a representation received from the Future Group, the NCDs held by four of the six schemes under winding up are proposed to be repaid from proceeds of the transaction with Reliance Retail.
Due to default in payment, the securities of Rivaaz Trade Ventures, a Future Group company, are being valued at zero.
Barring issues in payment with Future Group, Essel and Anil Dhirubhai Ambani Group, all other investee companies in portfolio have made the payments as per schedule, since the day of the winding up. The volatility in NAV of the suspended funds is largely due to mark-to-market movements, he said.
The fund house had distributed ₹146 crore received from Vodafone Idea among the unit holders of the segregated portfolio in proportion to their entitlement.