Unitech to raise up to Rs 5000 crore via issue of securities

Real estate company Unitech Ltd said on Monday that it plans to raise up to Rs 5,000 crore through issue of securities. The company said this is an “enabling resolution”, and follows the expiry of a similar resolution earlier. But it did not give out details of fund raising.
Unitech Ltd shares ended nearly 3.4% higher on BSE, at Rs 45.75 on Monday.
The company, in a notice to BSE, said besides the raising of additional long-term funds, the Board of Directors had also given the nod to increase authorized share capital of the company from Rs 500 crore to Rs 1,000 crore. Unitech has convened an Extraordinary General Meeting (EGM) on January 19, 2009, to seek the shareholders’ approval on the proposals.
“It is an enabling resolution that we would like to keep at any point so whenever we need, we can raise funds. At this point, there are no specific plans and the markets too are not favorable, but things could improve over the next one year,” a senior company official said.
It may be recalled that Unitech Ltd is hoping to mobilize up to Rs 4,000 crore through the sale of some assets and equity in order to repay part of its Rs 8,400 crore debt by March, 2009.
This would be achieved through transfer of about Rs 1,200 crore loans to Unitech Wireless; raising about Rs 1,200-1,500 crore through a sale of hotels and office properties; and Rs 1,000 crore from private equity funding into residential projects.