Unitech tanks 10% after LIC issues default notice

Shares of realty major Unitech today plunged by nearly 10% amid reports that the company has received a default notice from LIC Housing Finance on a loan taken in 2007 for a luxury housing project in Noida.

Unitech's scrip tanked 9.54% to close the day at Rs 15.65 on BSE. Intra-day, the scrip lost 14.45 percent to Rs 14.80. On NSE, the stock slumped by 8.99% to Rs 15.70 apiece.

With share price plunging, Unitech market value shrunk by by Rs 435 crore to Rs 4,091 crore.

As per media reports, LIC Housing Finance issued a notice to the company barring it from selling the Noida Sector 96 land, which has been pledged as collateral against the loan.

Unitech said in a statement that financial results for the current quarter (October-December) would reflect "no pendency" with the said lender.

Although company did not share details, sources said the Unitech had taken a loan of Rs 300 crore in 2017, of which Rs 100 crore has already been paid.

About Rs 70-80 crore was overdue this year and both the parties have recently agreed to settle this amount during this month, they added.

Meanwhile, the benchmark Sensex settled at 20,708.71, lower by 146.21 points from its previous close.