Unitech to halve debt via asset, share sale

Unitech Ltd is likely to almost halve its debt to Rs 4,000 crore from the existing Rs 7,800 crore by the end of March 31, 2010 through money raised via private placement of shares and asset sale, sources close to the development said.

Unitech Ltd is likely to almost halve its debt to Rs 4,000 crore from the existing Rs 7,800 crore by the end of March 31, 2010 through money raised via private placement of shares and asset sale, sources close to the development said.

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Company officials could not be reached for a comment.

Last Friday, the company raised $575 million or about Rs 2,700 crore through a qualified institutional placement post which promoters’ share came down to 36 per cent.

Squeezing under a liquidity crunch due to lower demand for real estate, Unitech has been on an asset-selling spree this year to fund its debt. It has already sold off its assets worth over Rs 900 crore including two hotels in Gurgaon and an office space in New Delhi.

Earlier in April, Unitech raised over Rs 1,600 crore in April through a qualified institutional placement of shares.