Unitech, India's second largest realty major, is looking to raise more equity and is evaluating several options for this exercise.
A person close to Unitech said the company is looking to raise at least $250 million through the equity route and evaluating many options such as qualified institutional placement (QIP) and even an overseas listing through the global depository receipts or the American depository receipts (ADR) routes.
When contacted the company spokesman declined to comment. An investment banker said that the company management has made presentations to potential investors in Singapore, the US, France and Amsterdam. If the fund raising goes through, this would be the third fund raising for the Chandra family-promoted real estate company. The company is planning to hold an extraordinary general meeting on Tuesday to get approvals for the fund raising. As per Sebi laws, a six month gap is mandatory before going for a second QIP in the same EGM approval. The company needs to get a fresh shareholders approval to bypass this law, which the company plans to take on June 16.
In this meeting, shareholders will also approve company’s plans to issue convertible warrants to the promoters. According to a company official, who spoke on the condition of anonymity, the promoters are planning to put Rs 1,100 crore through these warrants. The Chandra family will initially put Rs 275 crore at Rs 50 a share price, the official added. After issuing these warrants, the promoters stake will increase by around 6%.
In April, Unitech raised $325 million through the QIP route to address its liquidity issues. Interestingly, while the previous QIP was done at Rs 38.50 per share, equity was issued the share is now trading at Rs 87 per share.
Apart from raising funds through the equity route, the company is also trying to sell its assets across various segments to raise around Rs 1,700 crore. The company has till date sold two hotels in Gurgaon for Rs 430 crore. It has also sold its Saket office property to a high net worth individual for around Rs 500 crore.
The proceeds of the fund raise are expected to reduce the debt of the company. The company has a debt of over Rs 8000 crore which it plans to decrease in the coming years. The proceeds of the previous QIP were also used for the ongoing projects of Unitech. The realty major has also launched a new affordable housing brand Uni-homes.
The company plans to launch its first affordable housing projects in Chennai.
A person close to Unitech said the company is looking to raise at least $250 million through the equity route and evaluating many options such as qualified institutional placement (QIP) and even an overseas listing through the global depository receipts or the American depository receipts (ADR) routes.
When contacted the company spokesman declined to comment. An investment banker said that the company management has made presentations to potential investors in Singapore, the US, France and Amsterdam. If the fund raising goes through, this would be the third fund raising for the Chandra family-promoted real estate company. The company is planning to hold an extraordinary general meeting on Tuesday to get approvals for the fund raising. As per Sebi laws, a six month gap is mandatory before going for a second QIP in the same EGM approval. The company needs to get a fresh shareholders approval to bypass this law, which the company plans to take on June 16.
In this meeting, shareholders will also approve company’s plans to issue convertible warrants to the promoters. According to a company official, who spoke on the condition of anonymity, the promoters are planning to put Rs 1,100 crore through these warrants. The Chandra family will initially put Rs 275 crore at Rs 50 a share price, the official added. After issuing these warrants, the promoters stake will increase by around 6%.
In April, Unitech raised $325 million through the QIP route to address its liquidity issues. Interestingly, while the previous QIP was done at Rs 38.50 per share, equity was issued the share is now trading at Rs 87 per share.
Apart from raising funds through the equity route, the company is also trying to sell its assets across various segments to raise around Rs 1,700 crore. The company has till date sold two hotels in Gurgaon for Rs 430 crore. It has also sold its Saket office property to a high net worth individual for around Rs 500 crore.
The proceeds of the fund raise are expected to reduce the debt of the company. The company has a debt of over Rs 8000 crore which it plans to decrease in the coming years. The proceeds of the previous QIP were also used for the ongoing projects of Unitech. The realty major has also launched a new affordable housing brand Uni-homes.
The company plans to launch its first affordable housing projects in Chennai.
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