Unitech to raise capital via share sale, warrants
Unitech shareholders on Tuesday approved issuance of up to 100 crore shares to investors over the next one year and 22.75 crore convertible warrants to its promoters.business Updated: Jun 16, 2009 21:27 IST
Unitech shareholders on Tuesday approved issuance of up to 100 crore shares to investors over the next one year and 22.75 crore convertible warrants to its promoters.
“Promoters will invest a total of Rs 1,100 crore over the next 18 months of which 25 per cent or Rs 271 crore will be invested upfront,” managing director Sanjay Chandra told reporters on Tuesday after an extraordinary general meeting of the company. Warrants will be issued at the rate of Rs 50 per share. Post the issue of warrants, the promoters’ stake in the company will increase by 6 per cent to 57 per cent.
Last month, the company’s board had approved issuance of warrants to the promoters on a preferential basis and had also given a nod to raising additional long-terms funds through issue of further securities. Chandra said the company has no immediate plans to raise funds.
"We do not have any intention to raise capital immediately as we are in a comfortable position ... debt is not an issue anymore," Chandra said. The company has a debt of Rs 7,800 crore.
In April, Unitech raised Rs 1,621 crore by selling 42 crore shares at Rs 38.50 a share post which promoters’ stake dropped to 51 per cent from 64 per cent. The company said it has so far used Rs 700 crore from the raised amount to repay debt.