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DHFL repays entire dues to DSP Mutual Fund, schemes’ NAVs rise

DSP Mutual Fund had an exposure of Rs 150 crore to commercial papers (CPs) issued by DHFL with scheduled maturity on June 25, 2019.

, ET Online|
Sep 09, 2019, 05.27 PM IST
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Deewan Housing and Finance Company (DHFL) has paid the entire pending debt to DSP Mutual Fund, the fund house said. Seven schemes of the fund house have seen a jump in their net asset value (NAV) after the payment was made by the housing finance company.

DSP Mutual Fund had an exposure of Rs 150 crore to commercial papers (CPs) issued by DHFL with scheduled maturity on June 25, 2019. DHFL had paid 50 per cent of the total debt in parts by June 28. The company had made part payments, Rs 60 crore on June 25 and Rs 15 crore on June 28, a total of Rs 75 crore. The fund house said that over the past two months they had been engaged with DHFL for the pending recoveries.

“On September 7, 2019, the company has paid the balance amount of Rs 75 crore; resulting in complete recovery for the CPs held by various schemes of DSP Mutual Fund. We thank you for your patience through this phase and assure you of our continued efforts to meet investor expectations,” the fund house said.

The seven schemes that saw a positive impact on their NAVs are: DSP Strategic Bond Fund, DSP Credit Risk Fund, DSP Low Duration Fund, DSP Dual Advantage Fund Series 45-38M, DSP Dual Advantage Fund Series 44-39M, DSP Dual Advantage Fund Series 46-36M, DSP FMP - Series 196 - 37M. DSP Strategic Bond Fund has seen the biggest spike of 2.73 per cent.

As an impact of the repayment, the shares of Dewan Housing Finance Corporation rallied 10 percent intraday on September 9.

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