Stocks

Unitech promoters pay Rs 51 cr to protect pledged shares

Press Trust of India New Delhi | Updated on February 01, 2011

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The promoters of Unitech have repaid Rs 50.6 crore to a clutch of investors from whom they had borrowed about Rs 250 crore a year ago by pledging their shares in the country's second largest realty firm.

The investors, from whom the funds were raised, had issued a notice on Friday last week giving virtually no time to Unitech promoters to return the money; else they (investors) had said they will sell the pledged shares in the market on Monday.

Sunday stay

This forced the Unitech promoters to move the Delhi High Court on Sunday night and got stay on selling shares in the stock market by the investors.

The promoters had raised Rs 250 crore from high net-worth individuals (HNIs) last year through issue of non-convertible debentures and had pledged their shares in Unitech to raise the fund. Morgan Stanley was the banker of the issue of debentures, sources said.

The total outstanding by the end of last week was Rs 178 crore, which the promoters firm was required to pay by May this year, sources said, adding that the promoters have started repaying the amount.

“The promoters have already paid Rs 50.6 crore as of now and the remaining Rs 127 crore would be repaid by February 22,” a source said.

Shares of Unitech fell by 10.59 per cent to settle at Rs 43.05 on the Bombay Stock Exchange amid overall weak market and reports of sale of pledged shares.

At the National Stock Exchange, Unitech plunged by 9.89 per cent to end at Rs 43.20.

Published on February 01, 2011

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