Mumbai: Real estate firm Unitech Ltd could be looking to raise funds through the qualified institutional placement (QIP) route for a second time in recent months, people familiar with the development said.
The QIP could be in the range of $250-300 million and lead to a equity dilution of about 10%. The people, who declined to be named, said Morgan Stanley and IDFC-SSKI are bankers appointed to the issue.
The firm denied this and said: “Unitech has no plans to raise money via QIP.”
Unitech raised $325 million via a QIP in April. A company has to wait for six months before issuing a second QIP, according to norms of India’s markets regulator.
Unitech’s promoter holding is 51.23%. It has board approval for an allotment of Rs22.75 crore worth of warrants, convertible in the next 18 months. After the conversion, promoter stake is set to rise to 56.11%.