The mutual fund industry had a total exposure of around Rs 6,600 crore to Essel Group. Last month, the group had raised Rs 4,200 crore by selling an 11 per cent stake in Zee Entertainment to global fund Invesco Oppenheimer.
According to sources, the group has repaid around 50 per cent, or Rs 580 crore, of the total outstanding amount to HDFC Mutual Fund, and 45 per cent, or Rs 760 crore of the outstanding amount, to Aditya Birla Sun Life Mutual Fund. It had also released nearly 60 per cent of outstanding amount to ICICI Prudential Mutual Fund and 52 per cent of the dues to Kotak Mutual Fund.
ICICI Prudential Mutual Fund has received around Rs 434 crore against its total exposure of Rs 739 crore in Zee LAS (loan against shares). Kotak Mutual has received Rs 599 crore
Essel’s promoters had inked an agreement with mutual funds, buying itself time till September 30 to repay the outstanding debt. As per the agreement, the funds would not sell the shares that they held as collateral in the open market.
The agreement had affected payouts in the fixed maturity plans of Kotak Mahindra Asset Management and HDFC AMC.
Aditya Birla MF has the highest exposure worth Rs 2,700 crore to Essel group securities. Others including HDFC MF, Franklin MF, ICICI Prudential MF, Kotak Mahindra MF, SBI MF and UTI MF have exposures ranging from Rs 100 crore to Rs 1,200 crore .