Franklin side pockets value raised from zero to 35%

New Delhi: Investors in the closed debt schemes of Franklin Templeton Mutual Fund have something to smile about. The valuation of the segregated portfolios holding Vodafone Idea NCDs has been revised following “positive developments” for the company. Side pockets of five schemes hold Vodafone Idea NCDs worth about Rs 1,200 crore. These NCDs are maturing in September 2023 but were till now valued at zero as per Sebi rules.

The valuation committee has now valued them at 35% following “a series of positive developments around Vodafone Idea Ltd”, according to Franklin Templeton. The move has led to the segregated portfolios being assigned an NAV and a value.

The positive developments include the telecom reforms package announced by the government in September 2021, which has offered a moratorium of four years for AGR dues and spectrum auction installments.


Also, the conversion of the full interest amount from the deferral of the spectrum auction installments and AGR dues into equity and tariff hikes have made things look better for Vodafone. The company’s credit rating was upgraded by CARE Ratings to B+/Stable from B-/Credit Watch with Negative Implications. The timely repayment of NCD maturities worth Rs 6,000 crore in the past three months has also helped.