Unitech to raise long-term funds, scrip soars 14%

The country's second-largest realty firm Unitech today said it will raise additional long term funds by issuing securities in the company.

The board has approved the raising of additional long-terms funds through issuance of further securities in the company, Unitech said in a filing to the Bombay Stock Exchange.     

Following the announcement, shares of Unitech surged 13.73 per cent to a high of Rs 72.90 on the BSE.     

Last month, Unitech had raised over Rs 1,600 crore through qualified institutional placement (QIP) to fund various projects and retire part of its Rs 8,400-crore debt.     

The company had alloted 42,10,64,935 shares at a price of Rs 38.50 a piece, aggregating up to Rs 1,621.09 crore.     

Post-QIP, the promoters' stake in Unitech has come down to 51 per cent from 64 per cent.     

Reeling under credit crunch, a host of realty firms in the country are now tapping the QIP route to raise funds.     

Earlier this month, Indiabulls Real Estate had said it would raise $600 million (about Rs 2,954 crore) through QIP to fund its business expansion plans.