UTI, Nippon India Mutual Fund decides to create segregated portfolio

UTI Mutual Fund and Nippon India Mutual Fund have taken the decision to develop a segregated portfolio. Net debt at Vodafone Idea, at the end of the December quarter, is about Rs 1.03 lakh crore, a level analysts believe is unsustainable for a company that is losing subscribers and can’t generate enough funds internally if it were to pay the demanded dues to the state.

UTI MF said, “As of February 14, UTI Credit Risk Fund, UTI Bond Fund, UTI Regular Savings Fund, UTI Dynamic Bond Fund and UTI Medium Term Fund have exposures to the debt securities of Vodafone Idea, the market value of the investment being Rs 186 crore.” Nippon India Mutual Fund stated, “In light of no further relief and the Supreme Court’s re-iteration of the requirement to make the payment, the company’s operations are likely to become unviable, unless there is significant equity infusion.

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