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Mumbai: The net asset value (NAV) of some debt funds of PGIM India Mutual Fund rose by as much as 52 per cent in a day after the fund got back money from ADAG group companies that were backed by shares of Reliance Nippon Life Asset Management.
PGIM India Ultra Short Term Fund which has assets of Rs 41 crore saw its NAV rise by 44.2 per cent, PGIM India Short Maturity Fund with assets of Rs 111 crore saw its NAV rise by 52.11 per cent, PGIM low Duration Fund with assets of Rs 176 crore saw its NAV rise by 6.92 per cent and PGIM India Credit Risk Fund with assets of Rs 489 crore saw its NAV rise 4.94 per cent.
The fund house marked down its bonds to 50 per cent as per the standard valuation matrix applicable for LAS structures, earlier this month.
The net asset value (NAV) of some debt funds of PGIM India Mutual Fund earlier this month fell by as much as 30 per cent in a day after CARE Ratings downgraded the ratings for Rs 850 crore NCDs of Reliance Business Broadcast News Holdings to “D’ status from CARE BBB-.
With the fund house getting its entire money back from Reliance ADAG group which was backed by shares of RNAM, the fund allocated the money back into the debt schemes.
This resulted in the NAVs of the schemes going up sharply.
