Unitech to raise Rs 1k cr via QIPs for fresh investment
The Financial Express, August, 03, 2009, Page 3
Kakoly Chatterjee, New Delhi
Unitech, India’s second largest listed real-estate company, is planning its third round of qualified institutional placement (QIP) for about Rs 1,000 crore. But unlike the first two issues, the proceeds from the new round of fund raising will be used for fresh investment instead of retiring its debts, a reflection of growing confidence in the real estate sector.
Unitech expects to price the issue at Rs 125, which will be 39% premium over its current market price of Rs 90.10 on Friday at the National Stock Exchange. However the company denied any such plans in response to an email sent to them.
The fund that is raised through the third QIP is expected to finance the affordable housing schemes that the company has launched in several cities. The Delhi-based company with a marketcap of Rs 24,000 crore has launched affordable housing projects like Brahma and Ananda in Perambur near Chennai and Uni Homes in Noida. The company has already raised Rs 4,325 crore this year through QIPs.
Unitech had last month announced it would invest Rs 1,700 crore to construct 20,000 affordable houses to become India’s top realty company within a year. It is aiming to sell 15,000 flats in the current fiscal year. The company will develop affordable houses across the country with an average price of Rs15 lakh. It will construct such houses whose average construction cost is estimated at about Rs1,000 per sq ft, on a total area of 16 to17 million sq ft.
In the wake of the downturn in the economy in the third and last quarter of 2008-09, Unitech like several other real estate companies had run up a sizable debt overhang. As per its published figures, at the end of the last financial year, the company had a total debt of Rs 9,055 crore. It has announced plans to scale it back to Rs 4,000 crore by the end of 2009-10.
Of the first tranche of Rs 1,625 crore raised in April, Rs 700 crore was earmarked to retire its debts. It is expected that some of the Rs 2,700 crore raised in the second tranche will also be used for the purpose but the company has not announced any figures.
It also has plans to raise Rs 1,230 crore in 2009-10 by selling assets to retire some of the debt. It has already sold a Saket property for Rs 500 crore and Marriott in Gurgaon for Rs 200 crores. Country Inn hotel and a school property is expected to fetch it Rs 160 crore and Rs 100 crore respectively.
The Financial Express, August, 03, 2009, Page 3
Kakoly Chatterjee, New Delhi
Unitech, India’s second largest listed real-estate company, is planning its third round of qualified institutional placement (QIP) for about Rs 1,000 crore. But unlike the first two issues, the proceeds from the new round of fund raising will be used for fresh investment instead of retiring its debts, a reflection of growing confidence in the real estate sector.
Unitech expects to price the issue at Rs 125, which will be 39% premium over its current market price of Rs 90.10 on Friday at the National Stock Exchange. However the company denied any such plans in response to an email sent to them.
The fund that is raised through the third QIP is expected to finance the affordable housing schemes that the company has launched in several cities. The Delhi-based company with a marketcap of Rs 24,000 crore has launched affordable housing projects like Brahma and Ananda in Perambur near Chennai and Uni Homes in Noida. The company has already raised Rs 4,325 crore this year through QIPs.
Unitech had last month announced it would invest Rs 1,700 crore to construct 20,000 affordable houses to become India’s top realty company within a year. It is aiming to sell 15,000 flats in the current fiscal year. The company will develop affordable houses across the country with an average price of Rs15 lakh. It will construct such houses whose average construction cost is estimated at about Rs1,000 per sq ft, on a total area of 16 to17 million sq ft.
In the wake of the downturn in the economy in the third and last quarter of 2008-09, Unitech like several other real estate companies had run up a sizable debt overhang. As per its published figures, at the end of the last financial year, the company had a total debt of Rs 9,055 crore. It has announced plans to scale it back to Rs 4,000 crore by the end of 2009-10.
Of the first tranche of Rs 1,625 crore raised in April, Rs 700 crore was earmarked to retire its debts. It is expected that some of the Rs 2,700 crore raised in the second tranche will also be used for the purpose but the company has not announced any figures.
It also has plans to raise Rs 1,230 crore in 2009-10 by selling assets to retire some of the debt. It has already sold a Saket property for Rs 500 crore and Marriott in Gurgaon for Rs 200 crores. Country Inn hotel and a school property is expected to fetch it Rs 160 crore and Rs 100 crore respectively.
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