Unitech rejects rumours of repayment default after stock falls

Property firm Unitech denied on Wednesday what it called "false and misleading" market rumours of the company defaulting on repayments to lenders, as its stock plunged as much as 50 per cent, hitting its lowest in 10 years.

Unitech's stock closed 35.69 per cent lower at Rs 8.65, having hit a low of Rs 6.75 earlier.

"Rumours are being spread by certain segments of the market to profit from trading pertaining to Unitech defaulting on repayments to certain lenders, which are false and misleading," the company said in a statement.

"Unitech has in fact significantly ramped up its execution capabilities and expects to increase deliveries considerably this year," the company said, adding the deliveries would add to cash flows and help reduce debt.

Unitech's debt was "stable" and were at "manageable levels", it said.

(Reuters)