Oct. 26 (Bloomberg) -- Unitech Ltd., India's second-largest real estate
company, has been ``slightly hit'' by the rise in interest rates, Managing
Director Sanjay Chandra told reporters in New Delhi today after the stock
dropped by a record.

Incremental borrowing costs are currently between 15.5 percent and 16.5
percent, Chandra said, without elaborating. The developer hasn't defaulted
on payments or cut jobs, and the stock is being targeted by people with
``criminal intent,'' he said.

Chandra aims to reverse a sell-off that saw Unitech plunge by 50 percent on
Oct. 24 on speculation that it faces a shortage of funds. The concern was
exacerbated when India's central bank this week said it would continue
fighting inflation, reducing the likelihood that it will ease borrowing
costs.

Unitech fell the most since its trading debut in January 1991 to 31 rupees
at the close of markets in Mumbai on Oct. 24. The stock, which had more than
doubled last year, is down 94 percent from its record closing price of
538.25 rupees on Jan. 2.
Unitech is filing complaints with the Securities and Exchange Board of India
and other regulators against the people who have spread ``malicious rumors''
about its operations to drive down the share price, Chandra said.


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