Promoters hike stake in Unitech to 48.5%

India's second-largest realty firm Unitech on Monday said its promoters have increased their stake in the company by 1.18 per cent to 48.57 per cent by converting warrants worth Rs 224.7 crore.

In a notice to the Bombay Stock Exchange, Unitech said its committee of directors at a meeting held on December 22, has allotted 5,90,34,352 equity shares of Rs 2 each at a premium of Rs 48.75 per share to Harsil Projects, a promoter group company.

Unitech managing director Sanjay Chandra told PTI that the promoters have paid Rs 224.7 crore now, which is 75 per cent of the total value of the warrants.

"We have paid 25 per cent of the amount 18 months ago when the warrants were issued," he added.

The company said the promoters' shareholding in the company after such allotment on conversion of warrants has increased to 48.57 per cent from 47.39 per cent.

In June last year, the company had issued 22.75 crore warrants convertible into equal number of equity shares at Rs 50.75 per share. These warrants are convertible into equity shares at the aforesaid price within a period of 18 months, which is on or before December 28.

"With this allotment, the allottee has exercised the conversion right with respect to all 22,75,00,000 warrants in total upon payment of balance 75 per cent of the issue price within the period of 18 months and hence after this trench of conversion, the company has no warrants outstanding for conversion," the filing said.

On December 22, Unitech promoters hiked their stake in the firm to 47.39 per cent for about Rs 192.12 crore. In June this year, the company had said its promoters increased their stake in the company by 0.42 percentage points, to 46.72 per cent by converting warrants worth Rs 76.44 crore.

In another transaction in June, the promoters had raised their stake to 46.30 per cent from 45 per cent by converting warrants worth Rs 224.78 crore.

In March also, the promoters had raised their stake to 45 per cent from 43.84 per cent by converting five crore warrants for Rs 190 crore.

The shares of Unitech were trading 2.22 per cent down during late-afternoon at Rs 61.80 a piece on BSE.