Unitech's woes continue

Quoted at less than Rs.5, at Rs.3.82 to be more specific, how much further “down” can one see this penny stock go to? We are talking about Unitech, supposedly the second largest realty company after DLF.

Debt has virtually sounded the death knell for this company and its cup of woes, has brimmed and overflown and the woes still continue.

The latest news from the company is that it has defaulted on payment of a loan instalment of Rs.38.52 crore to the Central Bank of India. The Bank, following this has issued a public notice of default and has declared the account as NPA on 30th Oct, 2015. It went on to caution people while dealing with the company and its directors.

The company stated that it has repaid Rs.264 crore out of the Rs.300 crore taken as loan and it expects to repay the outstanding amount within a short span of time.  Unitech’s consolidated net debt as of 31 December 2015 stood at Rs.6,802 crore.