Unitech to raise Rs 1,621 cr to part fund borrowings

Reeling under a debt burden of Rs 8,400 crore, the country's second largest realty player Unitech today said it plans to raise up to Rs 1,621.10 crore by issue of equity shares through private placements to partly pay back the borrowings.

In a filing to the Bombay Stock Exchange, the company said its Board of Directors in a meeting held yesterday had authorised it to issue up to 42.11 crore equity shares of Rs 2 each at a price of Rs 38.50 per equity share (including a premium of Rs 36.50 per equity share), aggregating up to Rs 1,621.10 crore.

The equity shares would be issued to Qualified Institutional Buyers (QIBs), it added.

The company had recently told its investors that it has an outstanding debt of Rs 8,400 crore in its book as on March 31, 2009, and faced huge challenges to raise funds for its projects in the past fiscal.

According to sources close to the development, Unitech would issue fresh shares for raising capital, which would be utilised to mainly service this outstanding debt.

Post-Qualified Institutional Placements (QIPs), the promoters stake would come down to 51 per cent from about 64 per cent. As on December 31, 2008, the promoters had 67.46 per cent stake in the company.