Indian property major Unitech is looking at raising around Rs 1,250 crore through a qualified institutional placement (QIP), according to domestic institutional investors.
The QIP proceeds are likely to be used to partially repay the Rs 500-crore debt outsandings to mutual funds which is due on April 19.
According to some institutional investors, Unitech of of India’s biggest property developers is hoping to close the issue next week. It has already made the presentations to investors such as SBI, LIC and HDFC.
Shares in Unitech rose 7% on the news and it has been sugested that if the Indian property company manages to raise the requisite cash, the risk outlook towards it would decline significantly.
Tags: Indian property developers, Property in India, Unitech
April 21st, 2009 at 11:47 am
Raising fund through QIP may be good step to survive but certainly it is not going to help for the longer period. The group should involve individuals, actual users and small investors to get the early results with least responsibilities.