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| Edited By: Vivek Seal & Pooja Sarkar |Source: DNA |Updated: Mar 16, 2018, 05:06 AM IST
Unitech Ltd, the country’s second-biggest realtor according to market capitalisation, raised a whopping $575 million or Rs 2,760 crore through its second qualified institutional placement (QIP) on Friday.
The company had planned to raise only $275 million in the second QIP tranche, but a surge in interest from US and European investors late on Friday — the issue opened at 5 pm and was wrapped up by 9.30 pm —- led to the company going for the additional mop-up of $300 million.
The shares were placed at Rs 81 on a day when they closed at Rs 82.35 on the Bombay Stock Exchange.
At that pricing, calculation shows Unitech will issue about 34 crore new shares.
In April, Unitech had mopped up $375 million or Rs 1,750 crore by issuing 42 crore
new shares @Rs 38.50.
That transaction had reduced the stake of the Ramesh Chandra family, the promoters of Unitech, from 64.7% to 51%.
Friday’s transaction has diluted their holding by a further 15%, taking it to 36%.
Unitech has, in the bargain, mopped up a total $900 million or Rs 4,320 crore from the
two QIPs.
Interestingly, the QIP cantered home even as another by rival Sobha Developers remained stillborn on Monday.
The money raised would be used to partly repay Unitech’s mountainous debt of more than Rs 7,800 crore.
The balance would be used to fund existing projects and new launches primarily in the affordable housing segment, sources said.
IDFC-SSKI, UBS, Morgan Stanley and Credit Suisse were the bankers to Unitech.
The first placement in April had seen strong interest from Singapore investors, especially The Government of Singapore Investment Corporation, apart from HSBC, Prudential of UK, Orient Global and Sandstone Capital had participated in the first placement of 42 crore shares.
Sources said many of the previous QIP investors also participated in the second issue.
Recently the promoters had said they would invest a total of Rs 1,100 crore over the next 18 months in the company, which would increase their stake to 48% over a period of time. The Chandras are expected to initially pay 25%, or Rs 271 crore, as the first tranche in the next couple of weeks.
