Vodafone Idea's troubles over spectrum dues casts shadow on more MF schemes

Mutual funds' overall debt exposure to Vodafone Idea stood at Rs 3,389 crore in December 2019

Vodafone Idea’s (VIL) risk of insolvency due to spectrum dues it owes the government have spilled over to more mutual fund (MF) schemes, with exposed schemes seeing 4 per cent-10 per cent dip in net asset values (NAVs) on back of valuations provided by the rating agencies.

The MF industry’s overall debt exposure to VIL stood at Rs 3,389 crore as of December 31, 2019, spread across 45 schemes, showed data from Value Research.

UTI Credit Risk Fund, which has 17 per cent of scheme assets exposed to debt papers of VIL, saw 10.42 per cent dip in its NAV