UPDATE:Unitech Net Debt To Fall After $575 Million Share Issue-Source
2009年6月29日 - 8:03PM
Dow Jones News
Unitech Ltd. (507878.BY), which raised $575 million via a share
sale to institutions, is expected to trim its net debt to INR40
billion by the end of March, a person with direct knowledge of the
matter said Monday.
Cash flows from the recent sale of assets such as hotels and
residential apartments will also help reduce the property
developer's net debt, the person, who asked not to be named, told
Dow Jones Newswires.
Higher loan rates, lofty property prices and fears of job losses
in a slowing economy have hit realty sales in Asia's third-biggest
economy. The market slowdown has squeezed cash flows for Unitech
and other realty companies, forcing them to raise funds through
private placement of shares as well as by the sale of non-core
assets such as hotels and school plots.
"There was a tremendous response to the second QIP (qualified
institutional placement)," the person said. "The total FII (foreign
institutional investors) demand was 96% and only 4% was domestic
companies and mutual funds."
IDFC-SSKI Ltd., UBS Securities India Pvt. Ltd., Morgan Stanley
India Company Pvt. Ltd. and Credit Suisse Securities (India) Pvt.
Ltd. were the joint global coordinators and bookrunners to the
issue.
Friday's share sale was Unitech's second after the one in April,
when the company raised INR16.21 billion by selling shares to
institutional investors including HSBC Holdings PLC, Prudential PLC
and Singapore's Orient Global.
Unitech issued 340 million new shares to the institutions at
INR81 a piece, the person said.
The share sale and cash flow from the recent sale of assets will
likely lower Unitech's net debt to INR50 billion in July, the
person said. Unitech's current gross debt is at INR78 billion.
Unitech is expected to receive INR7 billion-INR8 billion in the
next two-three months from the assets it sold recently, the person
said, adding proceeds from the sale of shares and assets will
likely reduce the company's debt/equity ratio to about 0.52:1 by
the end of March.
"With this capital infusion, we believe UT has more or less
overcome its balance sheet pressure and will enjoy flexibility to
scale-up execution," Sameer Baisiwala and Arunabh Chaudhari,
Mumbai-based analysts at Morgan Stanley said in a note.
Morgan raised Unitech's rating to overweight, citing reducing
debt levels and improving prospects for the residential sector.
-By Santanu Choudhury, Dow Jones Newswires: +91-11-4356-3305;
santanu.choudhury@dowjones.com