Unitech makes a comeback, stock up 10 pc

Shares of Unitech today staged a strong comeback, surging nearly 10 per cent, after the realty firm blamed certain sections of the market for spreading "false and misleading" rumours about the company defaulting on its debt repayment that resulted in severe slump yesterday.
The stock soared 8.97 per cent to settle at Rs 9.48 on the BSE. During the day, it zoomed 14.94 per cent to Rs 10.
At the NSE, it jumped 9.82 per cent to end at Rs 9.50.
The stock had yesterday plummeted 35 per cent.
Unitech's net debt was Rs 6,332 crore at the end of the last fiscal, which the company said was stable and at manageable level.

"Rumours are being spread by certain segments of the market to profit from trading pertaining to Unitech defaulting on repayments to certain lenders, which are false and misleading," Unitech had said in a statement yesterday.

On the contrary, Unitech has brought down its debt and other liabilities including telecom related liabilities significantly during the last financial year, the company said in a filing to the BSE today.
In fact all the company's telecom related debt has been repaid.
Unitech has been focusing on scaling up its construction activities and expects to increase deliveries considerably during the current year.
Contracted sales of Unitech from its existing projects will yield positive cash flows for the company as the construction progresses, enabling the company to service its loans and gradually bring down the overall debt, the filing said.