“The Company has decided to provide a liquidity arrangement to certain fixed maturity plan schemes of HDFC mutual fund (FMP schemes), to deal with the illiquidity faced by such FMP schemes due to their exposure to the non-convertible debentures ("NCDs") issued by Edisons Infrapower & Multiventures Private Limited and Sprit Infrapower & Multiventures Private Limited, companies promoted by the Essel group,” HDFC AMC said in a regulatory filing.
Provision of such liquidity arrangement will entail acquisition by the company of NCDs issued by the Essel Group companies held by such FMP Schemes at the prevailing valuation as on respective maturity/purchase dates. The liquidity arrangement may involve an aggregate outlay not exceeding Rs 500 crore and will be put in place shortly, it added.
At 09:46 am, the stock of HDFC AMC was trading 5 per cent lower at Rs 1,842 on the BSE, as compared to a 0.14 per cent rise in the S&P BSE Sensex. A combined 509,967 shares changed hands on the counter on the BSE and NSE so far.