Unitech to raise Rs 1,324 cr through private placement
A day after posting a 105 per cent sequential growth in profits, Unitech Ltd on Friday announced plans to raise $275 million or Rs 1,324 crore through a private placement of shares in the open market at the price of Rs 81 per share.india Updated: Jun 26, 2009 22:16 IST
A day after posting a 105 per cent sequential growth in profits, Unitech Ltd on Friday announced plans to raise $275 million or Rs 1,324 crore through a private placement of shares in the open market at the price of Rs 81 per share.
Promoters’ stake will drop eight per cent to around 43 per cent post the fresh round of fund-raising. However, the stake would go up to 48 per cent, if the company makes payment for 22.75 crore convertible warrants, for which it had taken shareholder approval on June 16.
Besides this, the country’s second-largest developer is also in talks with private equity players to raise up to $250 million (about Rs 1,200 crore) by selling stakes in specific low-cost housing projects, sources said.
The company has a long-term debt of Rs 7,800 crore and expects to use fresh funds to service some of its debt.
Company spokesperson declined comment. However, sources said the raised capital would be used to fund both our new and existing projects and service some of our debt. Unitech has sold close to 4 million square feet of residential property so far and has a target to book 20 million square feet of developable area this fiscal. The developer also plans to launch around 40 affordable housing projects during current financial year.
This is the second time since the beginning of the financial year that the company has raised money from the markets. Earlier in April, Unitech had raised Rs 1,621 crore through selling 42 crore at Rs 38.50 a share. Promoters’ stake went down to 51 per cent from 64 per cent.