Unitech - 2 G Scam: Under Review :: Anand Rathi

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Unitech
Under Review
In light of the recent events related to the 2G spectrum issue, we
keep Unitech Under Review till further clarity emerges; Unitech
owns 32.75% in Uninor with an investment of ~`6.8bn.
 Real estate business. Unitech has sold 20.7m sqft of space in the
past six quarters, as of 2QFY11. Value of this sale stands at
`93.7bn. Net debt for the company stands at `58bn, as of
2QFY11.

 2G spectrum issue. The promoters had applied for and acquired
UAS licenses for 22 circles, for `16.58bn. Post the licenses, they
sold 60% share to Norway-based Telenor for a consideration of
`61bn; the new company is called Uninor. Unitech owns 32.75%
stake in Uninor with an investment of ~`6.8bn.
 Impact on Unitech. Recent events related to 2G spectrum could
directly impact Unitech as it holds a 32.75% stake in Uninor.
Unitech’s real estate business could face liquidity crunch for
acquisition of future projects.
 Under Review. We keep our current estimates and target price
Under Review, till further clarity.