HDFC AMC marks down value of Essel Group NCDs by Rs 120 crore: Report

HDFC AMC had marked down Rs 120 crore due to the drop in share prices of ZEE and Dish TV, which were used as collateral by Essel group.

HDFC Asset Management Company (AMC) has marked down the value of Essel Group's non-convertible debentures (NCDs) by Rs 120 crore, according to a report by The Economic Times.

Essel Group owed HDFC AMC Rs 149 crore, of which Rs 120 crore has been marked down by the fund house during the quarter that ended on March 31. The mark-down was after the steep drop in share prices of ZEE and Dish TV, which were used as collateral.

Moneycontrol could not independently verify the story.

HDFC AMC has not yet responded to a request for comment by The Economic Times.

Essel Group, which has a stake in Zee Entertainment Enterprises (ZEE), sold some shares to foreign investors to pay off Rs 375 crore out of the Rs 500 crore it owed to the AMC, the report said.

Essel Group had cleared some payments to HDFC Mutual Fund, ICICI Prudential MF and Aditya Birla SL Mutual Fund after it sold some of its stake in ZEE in November 2019.

In January 2020, HDFC AMC and some other mutual funds decided not to sell ZEE shares and gave Essel Group time till September to clear outstanding dues.

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