Unitech Plans £360-m LSE listing

November 30, 2006	(Be the first to rate this story!)  Loading ...
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After the Rahejas and Hiranandani, it’s now the turn of the Unitech, one of India’s leading real estate development companies, to tap the overseas markets to seek new capital for growth and expansion.

Unitech plans to raise as much as Rs. 3100 crore (£360 million) on the Alternative Investment Market (AIM) which is created by London Stock Exchange to enable small companies to raise capital with relaxed policies. The Unitech scrip dropped 0.05% on the BSE to close at Rs 491.90 on Wednesday.

Unlike other stock exchanges in India or U.S., AIM offers an easy procedure for selling shares thereby eliminating the need for the interested companies to follow stringent rules. Perhaps this is what is encouraging the Indian realty developers to seek overseas assistance, say head of a global firm, who didn’t wish to be quoted.

The listing of UCP, based in the Isle of Man is learnt to aid Unitech in raising funds to get hold of major stakes in six major real estate projects, including four IT SEZs, one IT Park in the NCR and an IT SEZ in Kolkata. It would jointly invest with Unitech and its affiliates in portfolio assets.

Unitech will try for land acquisition plans whereas the UCP is likely to offer property development services, says Atul Kapur, chairman-elect of UCP. The company is more inclined towards focusing its attention towards growth markets of IT and ITeS sectors which are believed to yield the most attractive future prospects.

Indian realty companies are looking forward to raise capital through the AIM as an alternative source to fund their growth profile, says Hong Kong-based senior property analyst Matt Nacard.

Unitech enjoys the status of being the largest listed realty developer by market value in India, with a market cap of around $8.9 billion.

News Published Under:   Real Estate India, Real Estate Developers |

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