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....
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