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DHFL re-payment lifts NAVs at DSP mutual fund

Earlier, the fund house had written down its entire investment in DHFL.

ET Bureau|
Last Updated: Sep 10, 2019, 07.49 AM IST
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Mumbai: The net asset value (NAV) of schemes of DSP Mutual Fund rose by as much as 2.73 per cent after the asset manager got back its full money it had lent to DHFL. Seven schemes of the fund house have seen a jump in their net asset values (NAVs) after the payment was made by the housing finance company.

Among open-end debt funds, the NAV of DSP Strategic Bond Fund went up by 2.72 per cent, while that of DSP Low Duration and DSP Credit Risk fund moved up by 1.16 per cent and 0.92 per cent. The NAV of four other close ended funds moved up by 0.19-2.2 per cent after the fund house got its money back.

Earlier, the fund house had written down its entire investment in DHFL.

DSP Mutual Fund had an exposure of Rs 150 crore to commercial papers (CPs) issued by DHFL with scheduled maturity on June 25, 2019. The company had made part payments of Rs 60 crore on June 25, 2019 and Rs 15 crore on June 28, 2019. which means, cumulatively, DHFL had paid Rs 75 crore (equivalent to 50 per cent of the total exposure) till June 28, 2019.

The fund house had initiated legal action against DHFL for recovery of dues and continuously engaged with the issuer for pending recoveries over the last couple of months.

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