Unitech slips on buzz LIC close to seizing Noida land

Unitech fell 1.93% to Rs 12.17 at 11:23 IST on BSE on a media report that Life Insurance Corporation of India is close to seizing the company's 350-acre land parcel in Noida.

Meanwhile, the BSE Sensex was down 28.01 points, or 0.13%, to 21,906.82.

On BSE, so far 14.58 lakh shares were traded in the counter, compared with an average volume of 37.05 lakh shares in the past one quarter.

The stock hit a high of Rs 12.39 and a low of Rs 12.08 so far during the day. The stock hit a 52-week high of Rs 31.50 on 20 May 2013. The stock hit a 52-week low of Rs 10.86 on 4 March 2014.

The stock had underperformed the market over the past one month till 10 March 2014, falling 3.05% compared with the Sensex's 7.87% rise. The scrip had also underperformed the market in past one quarter, falling 21.46% as against Sensex's 3.20% rise.

The mid-cap company has an equity capital of Rs 523.26 crore. Face value per share is Rs 2.

According to a report, Life Insurance Corporation of India (LIC) has taken notional possession of a slice of Unitech's 350-acre land parcel in Noida after the company failed to repay a part of its nearly Rs 150-crore loan from LIC.

In a 'Notional Possession Notice' issued, LIC cautioned the public against dealing with the land parcels in sectors 96, 97 and 98 in Noida, which is prime property along the expressway that connects the Delhi suburb with Greater Noida, the report said.

Notional possession is a step short of taking physical control of an asset, although the property remains under the company's charge. The property can be handed back to the company once the accounts are settled, report added.

As per the report, the company has not cleared a part of the dues, prompting LIC to issue a demand notice on 26 November 2013, asking the company and its guarantors - including the promoters, Ramesh Chandra, Sanjay Chandra and Ajay Chandra, and group companies - to repay the dues within 60 days. But, with the amount remaining overdue, the insurance company took possession of the property on 7 March 2014 as part of the land had been offered to it as a collateral when the company took the loan, the report said.

On a consolidated basis, Unitech's net profit fell 61% to Rs 32.83 crore on 13.5% increase in net sales to Rs 731.68 crore in Q3 December 2013 over Q3 December 2012.

Unitech is a leading real estate developer in India. It offers the most diversified product mix comprising residential, commercial/IT parks, retail, hotels, amusement parks and SEZs.

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