InvestorQ : How much loss will investors in Templeton have to take now after the latest Essel Infra default on bonds?
Dia Deshpande made post

How much loss will investors in Templeton have to take now after the latest Essel Infra default on bonds?

Answer
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Ria Jain answered.
5 months ago


The latest problem for Franklin Templeton has come about with the default on its bonds by Essel Infra, a part of Subhash Chandra’s Essel group. Franklin Templeton has a Rs.616 crore exposure to Essel Infra NCDs and it has defaulted on these NCDs. Four of the six schemes that were wound up by Franklin Templeton in April, have an exposure to Essel Infra's NCD. However, these NCDs are backed by equity shares of Zee Entertainment and Dish TV but both the stocks are likely to fall sharply when trading resumes on Tuesday. The fund has already written off nearly 85% of the value of its total exposure to Essel Infra and it only has Rs.92 crore of Essel Infra bond value in its books. While the additional loss may not be much, such NCD defaults are not good news for debt funds.