Franklin Templeton has received a payment of Rs 1252.44 crore from Vodafone Idea towards full principal and interest dues for the period June 12 to July 9, 2020, said a press release issued by the fund house.
These bonds were held in segregated portfolios of six debt funds: Franklin India Ultra Short Bond, Franklin India Low Duration, Franklin India Short Term Income Plan, Franklin India Credit Risk, Franklin India Dynamic Accrual and Franklin India Income Opportunities.
Gradually getting the dues
On June 12, the fund house had informed the receipt of payment of interest due on the said bond. Unit holders were paid by June 17.
As the fund house received the payment in full, this will be the final settlement for the segregated portfolio 1 of the aforesaid schemes. The total payout to unitholders will be the payment price per unit multiplied by the total outstanding units that will be extinguished.
For units held in physical or statement-of-account mode, all outstanding units held by investors as on July 10, 2020 will be extinguished and the amount will be distributed to unitholders by July 14, 2020. For units held in demat mode, all outstanding units held as on July 17 2020 (the record date) will be extinguished and the amount will be distributed to unitholders by July 20, 2020.Unit holders need not take any action to receive the payout. The amount gets credited to your bank account automatically. You may need to check for capital gains implications from the transaction.