Unitech, the biggest real estate firm in the country after DLF, is set to mop up around Rs 5,000 crore through private placement to qualified institutional investors. According to highly placed sources, the company is conducting a road show abroad and is expected to complete the transaction by next week.
This will be the largest private placement in by an Indian company. GMR Infrastructure’s Rs 4,000 crore placement was the largest before this.
Besides funding Unitech’s realty business, the proceeds will be used to fund the company’s diversification into telecom, a senior executive of the company said on condition of anonymity. The company is expected to issue around 80-90 million shares of Rs 2 each. The Unitech scrip is trading at around Rs 520, resulting in a market capitalisation of Rs 85,000 crore ($21 billion). At the current price, the private placement will involve a divestment of around 5 per cent of Unitech’s enhanced paid-up capital. Last week, the company had taken board approval to issue 200 million shares.
In addition, Unitech is raising Rs 2,800 crore in its real estate trust, Unitech Office Trust, which will be listed on the Singapore stock exchange. Unitech’s Singapore real estate trust will acquire some of the infotech parks and special economic zone projects of the company in India. Sources said of the six infotech parks and SEZ projects the company is developing; it will initially offer three to the real estate trust. “These will have a combined area of about 10 million sq ft,” sources said.
The company has received licences to provide mobile telecom services nationwide. Once it gets spectrum for its telecom service, Unitech will consolidate the eight subsidiaries that have received the licences under one holding company.