Unitech repays creditors, gains 5.57% on BSE

Shares of realty developer Unitech gained 5.57 per cent in early trade on the BSE on Wednesday after the company's promoters announced they have repaid Rs 50.6 crore to creditors from whom they had raised about Rs 250 crore a year ago by pledging their shares.

The creditors from whom the funds were raised had issued a notice on Friday last week giving virtually no time to Unitech's promoters to return the money, saying they would sell the pledged shares in the market on Monday in case of non-payment.

Reacting to reports on the potential sale of the pledged shares, Unitech's scrip had plummeted 10.59 per cent on the Bombay Stock Exchange (BSE) in Tuesday's session.

However, the company's shares bounced back 5.57 per cent to a high of Rs 45.45 apiece on BSE following the promoters' statement that they had repaid Rs 50.6 crore to their creditors.

Unitech's counter made a similar recovery on the National Stock Exchange and advanced by 5.45 per cent to Rs 45.40 in the first half of trade on Wednesday.

The rebound in the broader market also supported Unitech's gains.