Mutual funds that had lent to the Essel Group against shares can breathe a sigh of relief as several funds have received the first tranche of payout from the group.
Also known as Zee Group, Essel Group on Tuesday announced that it has successfully completed the first tranche of Zee Entertainment Enterprises Limited (ZEEL) stake sale to Invesco Oppenheimer Developing Markets Fund. Sources in several mutual funds said they had received nearly Rs 2,000 crore from the Zee Group on Tuesday. Fund houses are hopeful the remaining amount would be paid before the September-end the time given to Zee Group to repay the money.
Essel Group had entered into an agreement to sell up to 11 per cent promoter stake in ZEEL to Invesco Oppenheimer Developing Markets Fund.
Sources in the industry said Aditya Birla Sun Life AMC received Rs 765 crore, HDFC AMC got Rs 580 crore, ICICI Prudential AMC and Kotak Mahindra AMC received Rs 434 crore and Rs 208 crore, respectively.
A Balasubramanian, CEO, Aditya Birla Sun Life AMC, said, Aditya Birla Sun Life AMC has received Rs 765 crore and with this payment, our exposure to Zee s loans against share (LAS) share will get reduced to roughly Rs 950 crore. Zee has paid around 50 per cent money to fund houses and we are hopeful that balance amount will come once other transactions will complete.
Another senior official of a leading fund house which received money from Zee, on condition of anonymity, said, We have received around 50 per cent of the money and the Zee management has indicated they will pay the remaining amount by end of September. As of now, no decision has been taken on future action if the Zee group fails to pay the remaining amount by the end of this month.
In January, share prices of ZEEL and Dish TV had fallen sharply between 26-33 per cent, on reports of pledged shares of promoters being invoked and sold. FE