About 96% of Unitech Limited’s second Qualified Institutional Placement (QIP), through which the real estate major has raised $575 million, was picked up by foreign institutional investors (FII), reports DNA. Mutual funds and domestic insurers picked up only 4% of the QIP.

HSBC’s unit Halbis Capital Management, Texas Pacific Group, Prudential, Nomura Securities, Farallon Capital Management, D E Shaw, Sansar Capital, Sandstone Capital, Amiya Capital, Duquesne Capital, DWS, Mirae were the investors in Unitech’s second QIP. Investor George Soros’s company also invested in the QIP.

HSBC, Sandstone Capital and US based Prudential had also invested in the real estate major’s first QIP, which was done in April this year. George Soros’s company had too invested in Unitech’s first QIP. Others who invested in Unitech’s first QIP, 90% of which was lapped up by FIIs, are Och-Ziff Capital Management and Orient Global. Unitech had mopped up $325 million in its first QIP.

The success of Unitech’s second QIP is attributed to the quick returns that its first QIP offered its investors. While the investors had bought Unitech shares at a price of Rs 38.50 in its first QIP, the shares are now trading at around Rs 82 (which was the closing price of the Unitech share on Friday). The investments have gone up by more than two times.

Unitech may reportedly use around 35% of the raised funds to repay a part of Rs 7,800 crore debts. It will use the remaining funds to expand its affordable housing portfolio.  Unitech plans to sell about 20,000 houses under its affordable housing brand, Uni homes.


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