The real estate major from India, Unitech Limited, today completed its second QIP issue of 575 million US dollars at a 2% discount to the current market price, due to huge demand for the company shares. There were more foreign and local investors who were in queue to lap up the fresh issue of equity shares by the company.
It is important to note that even the current issue price is nearly half the price the share was quoting a year ago.
The new funds will help the company to slash the nearly two billion dollars worth of high cost debts on its books, piled up due to the crash in demand for housing and commercial real estate in India, in the last one year.
The company made the first QIP only in April 2009, wherein it raised around 325 million US dollars, again to retire the overdue debts.