Unitech advances 5.57% on BSE after debt repayment

Shares of realty developer Unitech gained 5.57% in early trade on the BSE today after the company's promoters announced they have repaid Rs 50.6 crore to creditors from whom they had raised about Rs 250 crore a year ago by pledging their shares.

The creditors from whom the funds were raised had issued a notice on Friday last week giving virtually no time to Unitech's promoters to return the money, saying they would sell the pledged shares in the market on Monday in case of non-payment.

Reacting to reports on the potential sale of the pledged shares, Unitech's scrip had plummeted by 10.59% on the Bombay Stock Exchange (BSE) in yesterday's session.

However, Unitech's shares bounced back by 5.57% to a high of Rs 45.45 apiece on the BSE following the promoters' statement that they had repaid Rs 50.6 crore to their creditors.

Unitech's counter made a similar recovery on the National Stock Exchange and advanced by 5.45% to Rs 45.40 in the first half of trade today.

The rebound in the broader market also supported Unitech's gains. The BSE benchmark Sensex snapped its five-day losing streak and was trading firm at 18,216.10, up 193.88 points from the previous close, at 1217 hours today.