Unitech's debt to come down to Rs 5,000 crore post-QIP

Unitech's debt to come down to Rs 5,000 crore post-QIP
The Economic Times, June 29, 2009, Page 7

PTI NEW DELHI

Realty major Unitech's net debt will come down to Rs 5,000 crore by the first week of July, following an infusion of Rs 2,800 crore into the company last week through a private placement of shares, sources said. At present, the gross debt of Unitech -- the country's second-largest realty firm -- is Rs 7,800 crore, they added.

Sources said that post-QIP, the company's debt-equity ratio would come down to 0.52:1, among the lowest in the industry, and the net worth would be about Rs 9,600 crore. With this equity raising, all the debt-related issues would get addressed and the focus now would be to build on the sales momentum created over the past three months, during which Unitech sold over 3,000 flats comprising 4.5 mil-lion square feet, they added.

Unitech has been raising funds from the beginning of this year to improve the cash flow of the company and reduce its huge debt, which surged to nearly Rs 11,000 crore by the end of 2008.

Since April, the company has raised nearly Rs 4,500 crore through two rounds of qualified institutional placement (QIP).