ABSL Mutual Fund Debt Schemes Side Pocket
ABSL Mutual Fund has exposure to Adilink Infra & Multilink Trading Pvt. Ltd and Essel Group. The fund house will separate portfolios in three of its debt schemes. These are the ABSL Medium Term Fund, Credit risk Fund, and Dynamic Bond Fund. Aditya Birla Sun Life MF holds debenture worth Rs 787 crore in papers of Adilink Infra. The above ABSL debt schemes have exposure of 7.5%, 3.7percent, and 5.6% respectively to Adilink papers.
On 25th November, the mutual fund house has sent a letter to investors regarding its side-pocket issue. In this note, the fund house said that returns from Adilink occurred due to the minority investors as the minority investor has applied a put option. ABSL promoters have may take it as an honoring event and move to create separate portfolios for the Adilink exposure.
The repayment of Adilink NCD will require to complete by the monetization of assets that are supported to it as security. Moreover, these are the unlisted infrastructure assets, the purchase process may delay due to review and finalization of all advertisements, documentation as well as authority permissions.
According to the source, some investors have the potential to analyze these assets in resemblance. However, the officials of ABSL said that they have to search all possibilities to clear dues as soon as possible.