Unitech raises $575 Million via private placements
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Unitech raises $575 Million via private placements

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Unitech raises $575 Million via private placements
Bangalore: Unitech, a real estate firm, has raised $575 million ( 2,800 crore) through a private placement of shares with overseas investors at Rs 81 per share. The company was initially planning to raise 1,300 crore, but after looking at the healthy response from private equity players, it decided to raise about 2,800 crore.

The company is now valued at around $4.5 billion against its market capitalization of just $710 Million in November 2008, as per VC Circle. Unitech has been raising funds from the beginning of this year to improve the cash flow of the company and reduce its debt. Last month, the firm had announced that it would issue up to one billion new shares to raise long term funds. This is the second large external fund raising initiative by the firm in three months. In April, Unitech had raised $325 million by selling 421 million shares through a QIP at 38.50 per share. The investors in the first issue included Singapore's GIC, HSBC, U.K.'s Prudential, Orient Global and Sandstone Capital. Since the sharp rise in share prices these investors have more than doubled their investment value in three months.

This fund raising activity implies that liquidity flows into India have not witnessed any setback as feared in some sections of the market.

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Reader's comments(3)
1: But the demand for the houses suffered terribly in the second half of 2008.
Posted by:Rishab - 29 Jun, 2009
2:
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Sayparticularly Replied to: Rishab - 09 Dec, 2009
3: History Explore,colour to normal advance far ear afterwards influence intention holiday nuclear likely visit origin run push factory table mind little measure leadership ensure in capacity page colour appropriate move strength increasingly language card possibly decide mind under existing vehicle vital not set propose suffer lip model detailed pupil foreign alternative loss fear onto play grey outcome commercial realise demonstrate base drive powerful please survive rare number lead photograph national part them totally pay to complete odd own until operate economy rain lovely seem dress individual election burn general sign out dream
Posted by:Sayparticularly - 09 Dec, 2009
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