The fund has so far secured complete exit from four investments and substantial exit from one investment (98 per cent of amount has been received). These exits have helped the fund to return ~601 crore to investors, which is approximately 57 per cent of the initial investment. In 2010, the fund raised Rs 1,056 crore.
The fund had a fixed life of six years. However, the fund’s life has been extended twice for a year each. The extended life of the fund expired on August 31, 2018. The fund is looking to now liquidate the entire investment portfolio on a best-effort basis by July 31, 2019 and if required extend the liquidation by another month (till August 31, 2019).
“To fully liquidate, the fund has been reaching out to market participants and prospective buyers to purchase all the remaining investments held by the fund. However, the responses from these prospective buyers have been tepid,” said the AMC.
Besides the NBFC-related issues, the AMC said demand correction has led to huge build-up of unsold inventory. It also pointed that although measures such as introduction of the goods and services tax and the Real Estate Regulatory Authority are beneficial in the long run, these have hampered demand and absorption level.