Unitech’s QIP does not have greenshoe option: IDFC-SSKI
April 17th, 2009
Unitech has filed for a USD 325 million qualified institutional placement (QIP) at around Rs 38.5 per share. SSKI was the main book-running lead manager and Antique Capital Markets was the advisor to Unitech.
Prashant Shetty, MD, IDFC-SSKI, said Unitech’s QIP issue does not have a greenshoe option. It is a provision contained in an underwriting agreement which gives the underwriter the right to sell investors more shares than originally planned by the issuer.
According to him, the QIP was mainly to deleverage Unitech’s balance sheet.
He said the response to the QIP was more than anticipated. “The QIP book has been subscribed by over two times. The Government of Singapore, Prudential, and Halbis are among the top investors in Unitech’s QIP.”