MORGAN STANLEY BUYS 5.1% STAKE IN UNITECH

Search News

US-BASED foreign institutional investor, Morgan Stanley, has bought a 5.1% equity stake in realty major Unitech for Rs 400 crore through the QIP route. Unitech has placed 10.4 crore shares with the fund, subsequent to which the latter holds 5.2% stake in the former, according to disclosures filed with the Bombay Stock Exchange (BSE). Before the placement, Morgan Stanley was holding 19.4 lakh shares, or 0.1%, in the Delhi-based company.

Unitech has allotted a total of 42.1 crore shares a price of Rs 38.50 per share, including premium of Rs 36.50, to Rs 44 qualified institutional buyers, raising Rs 1,621 crore to repay part of its debt. The shares have been allotted under the recently closed QIP issue which, according to merchant banking sources, was subscribed more than two times. SSKI was appointed as the main book-running lead manager for the issue. The stock has risen 20% in the past one month, though it is still quoting at a sharp discount to the peak of Rs 338 recorded on May 5 ‘08.

The placement would substantially dilute promoters’ stake in Unitech. According to the company’s shareholding data available as on March 31 ‘09, promoters held 64.5% stake, while foreign institutional investors owned 8.2% equity.

Find Lawyer / Law Firm

Extradition Law in India

Every time an offender stealthily leaves India to take refuge in another country, the Government of India starts all over again with its strategy of bringing him back to the nation to make him stan More

Legal Consultation - Consult over phone, chat or send questions

Helplinelaw can set up your session with quality and experienced lawyers to discuss and resolve your legal matters. You can avail consultation in form of sending questions, phone call or webchat discussion  More