UTI Mutual Fund Receives Payments From Altico Capital
A worker stands at a construction site in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

UTI Mutual Fund Receives Payments From Altico Capital

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UTI Mutual Fund on Monday said it has received payments to the tune of Rs 20.5 crore from Altico Capital India, a lender to real estate companies.

Certain UTI Mutual Fund schemes invested in debt instruments of Altico that were downgraded to below investment grade by credit rating agencies in September 2019. Pursuant to this, UTI Mutual Fund schemes marked down their respective exposures to such instruments by 75 percent.

Altico Capital, on Dec. 30, distributed available cash to lenders in proportion to their respective overdue aggregate principal amount outstanding and along with applicable interest, the fund house said in a statement.

In connection with this, certain UTI Mutual Fund schemes received an aggregate amount of Rs 20.50 crore from Altico Capital and such schemes accounted for their respective portion of such amount, it added.

UTI Credit Risk Fund had an exposure of about Rs 200 crore in debt security of Altico Capital. UTI MF's sponsors are State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India.

Last month, UTI MF filed draft papers with markets regulator Securities and Exchange Board of India to float an initial public offering and according to investment bankers, the issue size is expected to be around Rs 3,000 crore.

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