Unitech promoters to invest Rs 1,000 cr

Promoters of realty major Unitech are looking to raise their stake by about 10 per cent in the company by subscribing to warrants worth about Rs 1,000 crore over the next 18 months.

The board of directors, in its meeting held yesterday, approved issue of warrants in the company to promoters on preferential basis, Unitech today said in a filing to the Bombay Stock Exchange. It also approved raising of additional long-term funds through issue of further securities.

An Extra-ordinary General Meeting (EGM) of shareholders is likely to be convened next month to obtain their approvals.

According to sources, promoters would invest Rs 1,000 crore in the next 18 months by subscribing to convertible warrants, out of which Rs 275 crore will be done in June.

Post-conversion, promoters stake in Unitech is likely to go up by about 10 per cent, sources said. The promoters' stake came down to 51 per cent from 64 per cent after the company raised Rs 1,621 crore in April through private placements.

Promoters would raise funds by exiting from non-core business to infuse capital in Unitech, they said. Ramesh Chandra-led promoter group has already sold its stake in Orissa Sponge Iron and Steel early this year.

Sources said post capital infusion, the debt-equity ratio of Unitech, reeling under a Rs 7,800 crore debt, would reduce significantly. The shares of Unitech today surged by 10.61 per cent to close at Rs 70.90 on the BSE.