The Telegraph
Since 1st March, 1999
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Damodaran puts faith in US-64

Mumbai, Jan. 28: The Unit Scheme-64, at one time the flagship scheme of the Unit Trust of India (UTI), may yet again find favour with investors, if UTI officials could be believed.

The US-64 counter that commenced market trading in the National Stock Exchange saw a best bid of Rs 9.10, against a net asset value of Rs 6 for an unit.

UTI will shortly go on a publicity drive to make investors aware of the new scheme.

M. Damodaran who was today appointed the chairman of the restructured UTI Asset Management Company, said: “When all this sinks in (the details of the new scheme devised by the government), the rates quoted in the stock bourse could even cross Rs 10 in the coming days”.

“Investors exiting from the scheme will get either cash or five-year bonds which will be traded in the markets,” he said.

A confident Damodaran added, “We expect to see the investors get a better price than the NAV.”

While the NAV is in the region of Rs 6, Damodaran expects US-64 to be traded in the region of Rs 10 to Rs 14.

On the new scheme of units being treated as tax-free bonds, Damodaran said, “We have now shifted that assurance from the investor to the instrument.” It would mean that any purchases of the units would henceforth mean that the benefits of the bonds would accrue to the new investor.

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