Unitech gets shareholder nod for raising Rs 5K cr

Real estate major Unitech today said it has got shareholders' approval for raising Rs 5,000 crore through issue of securities.

The shareholders at the extra-ordinary general meeting has approved the raising of additional long-term funds up to Rs 5,000 crore, through issuance of further securities in the company, Unitech said in a filing to the Bombay Stock Exchange.

The company, which on December 22 got board approval to raise long-term funds up to Rs 5,000 crore, is at present passing through a huge credit crunch and is in talks with potential buyers to offload some of its hotels and commercial properties.

Further, the shareholders have also approved the raising of the authorised share capital of the company to Rs 1,000 crore from the existing Rs 500 crore, the filing added.

Also Read: Unitech restructures debt from mutual funds

According to sources, the company is in urgent need of capital as it has already rescheduled Rs 1,000 crore loans to pay Rs 2,500 crore by March out of the about Rs 8,000-crore debt. Unitech is negotiating with banks for rescheduling of another Rs 500 crore.

Unitech was trading at Rs 28.10, down 6.64 per cent on the BSE.