New Delhi: Realty firm Unitech Thursday said it has repaid all debts pertaining to telecom business and will bring down its overall debt of over Rs 6,300 crore gradually with the help of positive cash flow.
In October 2012, Unitech had exited from the telecom joint venture with Telenor by selling its entire 32.75 percent stake to the Norwegian firm.
Unitech's response came following clarification sought by the BSE with reference to reports that Unitech shares plunged on possible loan default.
The company's share price fell by 35 percent yesterday to Rs 8.70 apiece on the BSE. In intra-day trade, share price had nosedived 51.63 percent to Rs 6.50.
However, The firm's share price today went up by 9 percent to Rs 9.48 apiece on the BSE.
"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.
"On the contrary Unitech has brought down its debt and other liabilities including telecom related liabilities significantly during the last financial year. In fact all the company's telecom related debt has been repaid," the company said in a filing to the BSE.
Its net debt was Rs 6,332 crore at the end of the last fiscal.
Unitech has been focusing on scaling up its construction activities and expects to increase deliveries considerably during the current year, the filing said.
"Contracted sales of Unitech from its existing projects will yield positive cash flows for the company as the construction progresses, enabling the company to service its loans and gradually bring down the overall debt," it said.
The company posted net loss of Rs 128.33 crore in 2014-15 fiscal as against a net profit of Rs 69.74 crore in the previous year. Income from operations increased to Rs 3,431.18 crore in the last fiscal from Rs 2,953.44 crore in 2013-14.
