Unitech gets LOI for Telecom Licence

Unitech Ltd has informed that the Department of Telecommunications, Ministry of Communications & Information Technology, Government of India (DOT) on January 10, 2008 has issued the Letters of Intent (LOIs) to 8 subsidiaries of the Company for issuance of Unified Access Services Licences (UASL) in respect of all the 22 telecom circles across the country.

In response, the said subsidiaries have duly complied with all the applicable formalities for issuance of UASL as prescribed in the said LOIs including deposit of requisite Entry Fees of Rs 1,658 crores, Financial Bank Guarantees of Rs 630 crores & Performance Bank Guarantees of Rs 252 crores and filed their reply with DOT for all the 22 telecom circles.

Karvy - Unitech

Karvy has a UNDERPERFORMER rating on Unitech with a target price of Rs 395

The believe the valuations are stretched at 1.63x NAV of Rs. 280 and 1.15x FY09 NPV of Rs 395

Motilal Oswal - Unitech

Motilal Oswal has a target price for Unitech is Rs315/share - a 20% premium to their FY09E NAV of Rs262. Upsides to NAV exists from land bank augmentation and changes in development plans. They initiate coverage with Buy rating