HDFC Asset Management Company has reported a mark-to-market loss of around ₹120 crore on the Essel group's non-convertible debentures (NCDs)—that it took on its books in June 2019— for the fourth quarter of financial year 2020. With the ₹25-crore loss that the AMC took in the previous quarters, the total valuation loss comes to ₹145 crore.
In June 2019, the AMC had moved ₹500 crore worth of Essel paper from its schemes to its own books. This implies that it has altogether taken a valuation loss of 30% on the debt.
