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| Parsvnath aims Rs 5,300 cr revenue |
| Press Trust of India / New Delhi Oct 09, 2009, 15:12 IST |
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Real estate firm Parsvnath Developers today said it expects a revenue of over Rs 5,000 crore in the next two and half years and is looking to raise about Rs 500 crore this fiscal by selling equity at the project level.
The company plans to cut down its debt to Rs 800-900 crore by March next year from the exiting Rs 1,420 crore.
"We have put construction of 42 million sq ft on fast track. In the next 24-30 months, we are expecting to realise Rs 5,300 crore from the sale of these areas," Parsvnath Chairman Pradeep Jain told reporters here on the sidelines of a NAREDCO function on affordable housing.
Jain said out of this 42 million sq ft area, 97 per cent is housing. The company has sold 35 million sq ft and expects to sell the remaining area in 6-9 months.
"From this 42 million sq ft of saleable area, we expect a total sales realisation of Rs 8,150 crore. The company has received Rs 2,850 crore from the buyers and the rest Rs 5,300 crore is receivable over the next 24-30 months," he explained.
Asked about company's fund raising plans, Jain said it was not looking to raise more funds through private placements of shares but is in talks with private equity firms for sale of equity at project level.
"By the end of this fiscal, the company will be able to raise Rs 500-600 crore by selling stakes at project level. We have already raised Rs 115 crore from a housing project in Delhi," he said, adding that the company is about to finalise two private equity deals.
Jain, however, declined to give further details.
However, sources earlier said Parsvnath raised Rs 225 crore through equity sale of two of its projects to private equity investors.
The company had raised Rs 115 crore from private equity firm Red Fort Capital by selling 22 per cent stake in the 17-acre premium housing project 'Parsvnath La Tropicana' at Civil Lines in North Delhi.
Earlier it had raised $35 million (about Rs 170 crore) through private placement of shares to reduce its debt and meet construction cost.
"Our focus is to create a huge base of internal accruals and retire the debt. In the next two years, we may become a debt-free or very low-debt company," Jain said, adding the company would utilise about 70 per cent of $35 million QIP fund to retire debt.
The company currently has a land bank of 3,400 acres with a saleable area of 193 million sq ft.
"Of the total land bank, about 97 per cent is fully paid and we have received all regulatory approvals and licences for about 85 per cent of land," Jain said.
When asked if any of its projects are delayed, he said, "Some projects may be delayed by about three months, but we are trying hard to cope up and deliver to customers on time."
He further said the company has decided to go slow on some projects such as development of Special Economic Zones and where construction has not begun.
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