Impact of Vodafone Idea Ltd on Debt Mutual Funds

On 16th January (last Thursday), Supreme Court dismissed the review petition filed by telecom operators on Adjusted Gross Revenue (AGR) related license and spectrum fee payments. Due to this, Vodafone Idea Ltd (VIL) has to pay INR 44,150 crore by 23rd January, 2020 as per media reports. However, AMCs have doubts on debt servicing capability of VIL and have marked down their fund NAVs. Franklin Templeton has highest exposure to VIL and it has already taken a 100% hit while others AMCs like Aditya Birla, Nippon and UTI have taken partial hit. Below is a list of all the open ended debt mutual funds that have seen drop in their NAVs.

However, as per media reports, telecom operators have approached Supreme Court again to get some relief in terms of the payment schedule.