Us-64 Redemptions May Touch Rs 6,000 Crore

The Unit Trust of India (UTI) is expecting redemptions in Unit Scheme-64 from anywhere between Rs 3,200 crore and Rs 6,000 crore when the scheme reopens for limited repurchase of units on August 1.

According to government sources, the Trust in its internal assessment has estimated that the total redemptions of US-64 can at most be 47 per cent of its unit capital of Rs 12,778 crore or Rs 6,000 crore.

UTI, however, expects the redemptions to be a more conservative 25 per cent of the unit capital.

Expecting redemptions closer to Rs 3,200 crore, the mutual fund behemoth is planning to raise Rs 3,000-4000 crore from a clutch of public sector banks with equity holdings in the US-64 portfolio as collateral.

The banks have, meanwhile, sought that UTI give only liquid shares which can be traded in the bourses.

This apart, the banks have also sought a margin money of 40 per cent of the line of credit extended to the institution or a comfort letter from the government.