InvestorQ : India ratings downgraded Altico's debt to D & worried about my investment in Altico capital, what should I do?
ishika Banerjee made post

India ratings downgraded Altico's debt to D & worried about my investment in Altico capital, what should I do?

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Roshni Hegde answered.
2 years ago
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Altico Capital India Ltd credit (NBFC) offers real estate credit. The company is backed by Clearwater Capital Partners, Varde Partners and Abu Dhabi Investment Council. This NBFCs rating got downgraded by Rating firms Care Ratings and India Ratings & Research. It was downgraded nearly to junk. The rating of the long-term issuer is now brought to 'D' from ‘A+’ and short-term issuer rating to ‘D’ from ‘A1’. Altico's investors include mainly HNIs. The lenders of the company include Flipkart co-founder Sachin Bansal and Reliance Mutual Fund.

The reason behind this is the default done by Altico of interest payment of approx. Rs 19.97 crore on overseas loans taken by Dubai-based Mashreq Bank. Also, the company credit profile stands negative.
If you are an investor in this company and looking to redeem will get the NAV of the fund excluding Altico. When UTI Credit Risk Fund realizes the sum from Altico proportionately, the fund will be distributed to the existing unit-holders.

Currently, now you will be allocated equivalent units in the segregated units of Altico. Thus, you can either redeem or wait for the funds to arrive in the company. I personally think, looking at the state of the company redeeming the investment would be good for now.
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