A debt mutual fund scheme by BOI AXA Credit Risk took an opposite force after its fund manager voluntarily marked down the value of its investments in securities of a subsidiary of Sintex Industries Ltd.
The net asset value of the credit risk fund that invested in non-convertible debentures of Sintex-BAPL Ltd. declined 18 percent in three days. This comes after Sintex Industries defaulted on its repayment of Rs 89 crore worth of NCDs, an exchange filing said. That led to a 55 percent markdown of the mutual fund house’s investments in Sintex BAPL.
Meanwhile, Brickwork Ratings downgraded Sintex BAPL’s instruments to ‘C’, citing non-receipt of no dues statement from the company for May and deterioration in its standalone operating performance in the last financial year, according to a statement on the rating agency’s website.
The value of the fund’s holdings in the securities, which stood at Rs 140 crore before the mark-down, is at a little over Rs 50 crore now.
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