Vodafone Idea has repaid the outstanding dues of Rs 2,850 crore to 7 bondholders including mutual funds and banks. The payment will be credited in the accounts of investors in the coming week including both principal and interest payments, said officials of these fund houses. Franklin Templeton, which had the largest exposure in this non-convertible debenture had received about Rs 1,250 crore and UTI Mutual Fund has received Rs 166 crore and Nippon India Mutual Fund has received Rs 121 crore.
The repayment was for Rs 3,500 crore non-convertible debenture (NCD) issued by Vodafone Idea in 2015 which was due to mature on July 10. After the reports of Vodafone Idea, investors had feared a potential default as it suggested that they could not pay rent and energy dues to telecom tower companies.
“This amount will be distributed to unitholders of the segregated portfolio as detailed below. This is the full and final payment for this segregated portfolio and will be made by extinguishing all the outstanding units held by each unitholder therein,” in a statement mentioned by Franklin Templeton. They have received the full value of the principal due, along with interest for the period 12 June to 9 July 2020. Nippon India has also received 100% from their outstanding from Vodafone which is Rs 121crore.
Most mutual funds in February had side-pocketed the investment in Vodafone Idea Cellular which was one the verge of going bankrupt. Debt investors were issued units in their accounts holding the non-performing assets. Telecom companies have an increase in the revenues as subscribers are consuming more data during a pandemic.

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