According to data compiled by Investment Advising firm Morningstar India, and as confirmed in a Moneycontrol report, mutual funds have nearly Rs 200 crore exposure including debt and equity in Coffee Day Enterprises.
Following the news of founder VG Siddartha's missing and eventual confirmation of death, share price of the company fell from Rs 193 to Rs 122.75 a piece in 2 days. Over Rs 1,000 crore was wiped off in market capitalisation. Mutual funds with exposure to CCD lost significantly in valuation.
Data shows that Canara Robeco Small Cap Fund has an exposure of close to Rs 5.7 crore, while ICICI Prudential S&P BSE 500 ETF has a smaller exposure of Rs 1 lakh.
Fund houses having exposure in Coffee Day group include BOI AXA, DSP and Indiabulls. The exposure is majorly in debt.
DSP write-offs 50% Investment in CCD
In a communication, DSP Credit Risk Fund informed its distributors, that it has an exposure to secured NCD (non-convertible debentures) issued by Coffee Day Natural Resources Private Limited (CDNRPL), of face value of Rs 69 crore as on 29 July, 2019, an Economic Times report said. The exposure was secured by a pledge of listed shares of Coffee Day Enterprises and a land parcel, it said.
It further informed that following the recent fall in value of the cover, Coffee Day Enterprises have asked for 2-week's time to come up with a concrete plan on the exposure. While it awaits the plan, the fund house decided to take a 50 percent haircut on its exposure. DSP also informed that there would be a valuation impact of -1.30 percent on the scheme.