Rs 8 Crore Worth Us-64 Units Redeemed On Third Day

Redemption pressure seems to be building up on the Unit Trust of India with respect to its repurchase offer of US-64 units at a special price of Rs 10.

The UTI today reported that cumulative redemptions in the last three days covered 2.22 crore units, implying a total outgo of Rs 22.2 crore.

In an about turn, UTI executive director B G Daga today told Business Standard that redemptions on the second day (August 2) amounted to Rs 8.4 crore.

Yesterday, Daga had categorically said that "the redemptions were more or less in line with the figures on day one", implying that redemptions were around the Rs 5.7 crore disclosed on the first day.

This implies that US-64 unitholders stepped up their efforts to seek redemption on the second day and maintained the momentum on the third day too.

According to a UTI press release, 15,824 unitholders tendered their applications covering 2.22 crore units in the first three days of repurchase.

With redemptions of Rs 5.6 crore on the first day and Rs 8.4 crore on the second, investors seem to have pressed redemptions of around Rs 8 crore on Friday.

Daga said that the first week of repurchase was going to be the most crucial one as all those interested in repurchasing would be putting in their applications during the first week itself.

During the first three days, the average request per investor worked out to 1,405 units per investor - much lower than the 3,000 units per investor ceiling fixed for repurchase.