Thread by @IamMisterBond

#FTSaga Update:

One more tranche of 3205 crs repaid on Jun 4'21

I had written an article on 24th April 20, day after @FTIIndia winding up schemes

In the end, I had mentioned a few points on what to expect going forward. Let me take each point and see where we stand today.

Link of my April 2020 article for ready reference:
bit.ly/3pmMbNk

Point No 1:
This is not delay or default and no haircuts so far

FM was asking time for reversal of Risk Aversion & markets to stabilise & normalise

Proven correct

Point No: 2

This is to give better value to Investors at cost of delayed liquidity

Again proven correct from almost 71% collections so far at far better values than on the date of winding up

Point No 3:
NAVs will be announced on daily basis;funds will accrue income,capital gains/loss based on value of underlying securities.Exactly as they would have if the schemes were open for purchase or redemption

Proven correct. NAVs declared daily & interest accrued daily

Point No 4:
FT may sell these securities at appropriate value (maybe at profits as well) if markets normalize and risk appetite of banks is restored

Proven correct. Securities sold at much better valuations than prevalent on 23rd Apr 2020. Visible from returns in these schemes

Point No 5:
Investors should expect better realization of underlying securities v/s if they are forced to sell based on redemption pressures currently.

Proven correct. By giving time to FM, for markets to stabilise, interest rates having softened, huge upside in realizations

At this pace of monetizing securities of wound up schemes, I personally believe that Investors will get their full money much sooner than their expectations.

Just some more patience required and hope for that saying:

"ALL'S WELL THAT ENDS WELL".

Finally, Investors should be happy with the outcome so far:

1. Current NAVs of all schemes are higher than NAVs as on 23 Apr 2020
2. Reflected in huge positive returns generated by these schemes so far
3. Some segregated doubtful portfolios have been realised & repaid back

Just goes to prove that if they were not confronted with frivolous legal cases and wasted precious time in litigation, investors could have received their funds back sooner than later

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