Mumbai, Nov. 16: The promoters of cash-strapped Unitech Ltd are in talks with prospective investors, including private equity firms, to raise around $100 million (roughly Rs 490 crore) through a fresh issue of shares.

Unitech is one of India’s leading real estate players but has run into cash problems in the past year.

The Unitech group has been raising funds through a series of transactions in the last few months. Recently, it sold a 60 per cent stake in Unitech Wireless — its telecom venture — to Telenor of Norway to raise Rs 6,100 crore.

Earlier, it had tapped private equity players to raise over $1 billion to fund its hospitality and real estate projects in Mumbai.

This is the first time that the group’s flagship is looking to raise money through an equity sale since its troubles began.

Sources said the promoters of Unitech, who have a 74.56 per cent stake, were looking to bring in a new investor, which could also be a private equity fund. The public, financial institutions and foreign institutional investors together hold 25.44 per cent.

Repeated attempts over the weekend to contact Unitech managing director Sanjay Chandra failed.

Sources said the equity sale would dilute the promoter’s holding in the company.

Unitech has reportedly put its 2-lakh-square-foot office in Saket, New Delhi, up for sale to tide itself over the cash crisis.

It is now learnt that the group may also be planning to put the Marriot Gurgaon hotel on the block. The hotel is expected to be ready early next year.

A recent report put out by CLSA, the foreign brokerage, said Unitech’s net debt had risen by Rs 1,100 crore to Rs 8,400 crore. At the same time, the amount that people owed Unitech had risen by Rs 500 crore to Rs 1,400 crore.

The brokerage said this could create a worrisome situation where customers did not pay up in time, raising the risk of defaults that could aggravate the company’s cash flow troubles.

CLSA also said the long-awaited strategic sale of the group’s telecom business to Telenor would only provide marginal relief on the cash flow front as Unitech will receive only about Rs 300 crore in the near term.

The brokerage said the company’s results in the second quarter (July-September) were worse than expected. It had reported net sales of Rs 985.2 crore and a net profit of Rs 359.66 crore during the quarter ended September 30.

In the full year ended March 31, Unitech had posted net sales of Rs 4,140.4 crore and a net profit of Rs 1,669.19 crore.

Unitech has undertaken several ambitious projects, including special economic zones and hospitality projects. The stock has slumped from a 52-week high of Rs 546.80 on January 2 to a 52-week low of Rs 26.60 on October 24.

Unitech has already pledged some properties to India Bulls as collateral.

The group has also said that some people have been spreading rumours about the company for their own devious ends. But even as these recriminations fly, the fresh infusion of capital in the flagship may give Unitech some breathing space.