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Unitech to raise $325 million through QIP

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 8:02 PM IST

Reeling under financial crunch, realty major Unitech has moved to raise $325 million (about Rs 1,567.75 crore) through qualified institutional placement (QIP) route mainly to service its debt of over Rs 8,000 crore.

According to industry sources, the company today launched the QIP at Rs 38.50 per share. The process is expected to be completed today itself as the company has commitments of about $700 million, they added.

However, Unitech spokesperson could not be contacted for his comments.

In January, Unitech had taken shareholders' approval to raise up to Rs 5,000 crore through issue of securities.The fund would be primarily utilised to service its debt, sources said, adding that at present the company has a total debt of about Rs 8,400 crore.Unitech had rescheduled most of its debts that were due in the last fiscal.

Unitech's Chairman Ramesh Chandra had said in December 2008 that company plans to raise up to Rs 2,500 crore through private equity and sale of assets.

The company's shares today fell by 9.78 % to Rs 43.35 on the Bombay Stock Exchange.

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First Published: Apr 16 2009 | 6:17 PM IST

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