Unitech to raise Rs 1,621.10 cr via share sale to QIBs

MUMBAI: The country's second largest realty player, Unitech, will raise up to Rs 1,621.10 crore by issue of equity shares through private placements.

In a filing to the Bombay Stock Exchange, the company said its Board of Directors in a meeting held yesterday had authorised it to issue up to 42.11 crore equity shares of Rs 2 each at a price of Rs 38.50 per equity share (including a premium of Rs 36.50 per equity share), aggregating up to Rs 1,621.10 crore.

The equity shares would be issued to Qualified Institutional Buyers (QIBs), it added.

According to sources close to the development, Unitech would issue fresh shares for raising capital, which would be utilised to mainly service the company's debt of Rs 8,400 crore as on March 31, 2009.



Post the Qualified Institutional Placements (QIPs), the promoters��� stake would come down to 51 per cent from about 64 per cent. As on December 31, 2008, the promoters had 67.46 per cent stake in the company.

Earlier this week, the company's board had approved a proposal to raise up to Rs 5,000 crore through issue of equity shares to QIBs. In January, it had taken shareholders' nod to raise the amount through issue of securities.