Unitech raises $575 million through PE placements
27 June 2009
Unitech, the second-largest realty firm in the country, yesterday announced having raised $575 million through placement of shares with overseas private equity funds at Rs81 per share.
Unitech had originally planned to raise $200 million for low-cost housing from PE firms, but considering the huge demand from investors it decided to increase the issue size.
According to analysts this clearly reflects the growing interest of foreign investors in the Indian real estate market.
According to the sources apart from PE equity firms including IL&FS, Warburg Pincus, Sun Apollo and TPG, an international realty developer specialising in low-cost housing had also shown interest in picking up stakes in Uni Homes projects.
Last month Unitech had announced construction plans for 20,000 affordable houses in at a cost of Rs1,700 crore to emerge as the number one realty company within a year. The company is aiming to sell 15,000 flats in the current fiscal.
Unitech managing director, Sanjay Chandra says that the company's focus on the top two-three per cent of India's population would now shift toward the mass housing segment and it would enter the budget and affordable housing segment.