With Altico Capital defaults on interest payments worth Rs 19.9 crore to Mashreq Bank, Dubai, mutual funds holding the security, could mark down their investments in the company by up to 75 per cent today. This means a scheme having a exposure of 5 per cent to Altico Capital could see its net asset value fall by 3.75 per cent in a single day.
“Mutual funds are likely to mark down their holdings in the scheme, by 75 per cent today post rating action,” said a domestic fund manager.
