unitech-taps-equity-markets-to-ease-leverage

Unitech taps equity markets to ease leverage

The Indian developer raises $325 million from the first QIP since December 2007. Meanwhile, H&Q exits another Korean company through a $35 million block trade.

Real estate developer Unitech last night became the first Indian company in more than a year to raise equity through a qualified institutional placement QIP when it sold $325 million worth of new shares as part an ongoing effort to reduce its high leverage.

The shares were offered at a fixed price, representing a discount of 10.9% versus yesterday's close, and saw good buying interest from Indian investors as well as support from foreign accounts, despite the company's dire financial position and tough operating environment.

This is a recapitalisation exercise similar to what we are seeing on a widespread basis in Europe and here in Asia most recently with Shimao Property, and people support that....

¬ Haymarket Media Limited. All rights reserved.

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