Unitech to raise Rs5000 crore
The country’s second largest realty firm, Unitech, plans to raise Rs5,000 crore through issue of securities. The company’s board has approved a proposal to raise long-term funds up to Rs5,000 crore or equivalent amounts in other currencies, through issuance of further securities.
The board also approved for increasing the authorised share capital of the company to Rs1,000 crore from the current Rs500 crore. Other plans of the company include investing Rs2,500 crore to launch 10,000 residential units in the Rs30-50 lakh category by the next fiscal. The company would launch affordable housing projects in Gurgaon, Noida, Greater Noida, Kolkata and Chennai, where it has land banks.
Affordable housing is determined by two things – market conditions and location. The company does not plan to launch luxury housing projects in the near future.
Last month, the company announced plans to invest Rs2,500 crore to develop 35 hotels across the country over the next seven years. It also plans to raise up to Rs2,500 crore through sale of some assets and equity to retire part of Rs 8,000 crore debt by March 2009.