PGIM India MF said that it has recovered all its dues related to Reliance Business Broadcast News Holdings (RBBNH) and Reliance Commercial Finance.
The fund house said it has recovered Rs. 289 crore including interest on its holdings in these two Anil Dhirubhai Ambani Group Companies.
In a note, Ajit Menon, CEO, PGIM India MF said, “We have received the balance 50% of the payment from Reliance capital. With this payout on Friday, we have received 100% of our due (Rs. 289 crores and interest) related to Reliance Business Broadcast and Reliance Commercial. NAVs in some schemes had been marked down 50% as per the standard valuation grid earlier and these NAVs have seen a full recovery.”
Earlier in September, some of the debt schemes of PGIM India MF had taken a beating after CARE Ratings downgraded the non-convertible debentures (NCDs) of RBBNH to ‘D’ or default grade. The downgrade had followed a delay in debt servicing of one of the NCDs that matured on September 11.
Among the worst hit schemes were PGIM India Short Maturity Fund and PGIM India Ultra Short Term Fund, as NAV of these two schemes declined by nearly 30% and 21%, respectively, a day after the downgrade.
PGIM India MF had closed fresh subscriptions to the affected schemes since June.
“We had shut fresh subscriptions so that new investors do not enter the funds and dilute the return potential for existing investors when write backs happen. Now that existing investors have gained back what they had lost due to the markdowns, we will open the schemes shortly,” Ajit said.
