Real estate major Unitech Ltd has put on hold a $1.5 billion qualified institutional placement (QIP) issue planned for the first quarter of 2008 in the light of the instability in the domestic stock markets and the global liquidity crunch.The company could place a maximum of 200 million shares in the QIP and dilute up to 12 per cent of shares on a total paid-up share capital of 1,623.37 million shares.
Unitech’s decision follows the cancellation of initial public offers (IPOs) by Emaar MGF, another major property developer, and Wockhardt Hospitals, due to weak response from investors.
Unitech was expected to use the QIP proceeds for its upcoming projects and telecom foray, which it is planning in all 22 telecom circles of the country, for which it has received a licence from the government. According to its annual report for 2006-07, it has 50 million square feet of projects under construction.
The company is also foraying into the Mumbai real estate market with an investment of Rs 4,000 crore and is planning to build 50 malls across the country with an investment of Rs 20,000 crore.
Unitech has collected over Rs 3,100 crore on the Alternative Investment Market (AIM) of the London Stock Exchange through its arm Unitech Corporate Parks Plc (UCP).It has also received approval from the Singapore Stock Exchange for an IPO for Unitech Office Trust, which will acquire its IT/ITeS firms in Noida, Gurgaon and Kolkata. It is expected to raise $700 million (Rs 2,800 crore) through this IPO.
No comments:
Post a Comment