DLF & Unitech back in business

India's two leading realty companies,
DLF and Unitech who had some serious liquidity problems because of recent global financial crisis are in the process of overcoming them. Both Unitech and
DLF have raised substantial sum through qualitative institutional placement ( QIP ) route. DLF also resorted to stake sale by selling a certain percentage of their share holding in the company.

Both these companies are in the process of restarting some of their projects which were put on hold because of liquidity crunch earlier. Unitech has restarted construction in three residential projects located in Dadar & Chembur. Unitech has also started the pre-sale process for those projects. According to company sources prices would be lower than the present market rates and also they have many slum redevelopment projects in the pipeline.

DLF has restarted construction activities in Lower Parel, Mumbai. DLF had bought this land for Rs 702 crores in 2005 from NTC. DLF had earlier planned a retail cum entertainment centre at this place but are planning to have commercial establishments there.

Official spokesperson for DLF did admit that the work at NTC mill had stopped for some time for some reasons. DLF had earlier brought in $800 million through a share sale. Both Unitech and
DLF has said that they would be focusing on affordable housing which will bring revenue to the respective companies and reduce their debts in their balance sheets.

Unitech’s net debt will come down to Rs. 5,000 crore , following an infusion of Rs. 2800 crore into the company through a private placement of shares. Unitech has been raising funds from the beginning of this year to improve the cash flow of the company and reduce its huge debt.

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