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| Parsvnath to raise Rs 2,500 cr via QIP, scrip soars 10% |
| Press Trust of India / Mumbai May 25, 2009, 11:36 IST |
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Real estate firm Parsvnath Developers today said it is planning to raise up to Rs 2,500 crore by way of qualified institutional placement (QIP).
"The board has decided to raise funds by various means, including through issuance of further securities to persons other than the existing equity shareholders of the company and also by way of QIP to qualified institutional buyers for raising a sum of up to Rs 2,500 crore," Parsvnath said in a filing to the Bombay Stock Exchange.
Following the announcement, shares of Parsvnath surged 9.96 per cent to hit its upper circuit at Rs 88.85 on the BSE.Reeling under acute cash crunch, a host of real estate companies are now resorting to QIP and preferential allotment of warrants to promoters to strengthen their cash balance.
Last week, Indiabulls Real Estate had raised Rs 2,656.50 crore through placement of securities to QIBs, while HDIL had said it would raise funds by way of QIP.
The country's second largest realty firm Unitech had said it would issue warrants worth Rs 1,000 crore to promoters, thereby raising their stake by about 10 per cent in the company. Last month, it had raised Rs 1,600 crore through QIP to fund various projects and pay off part of its Rs 8,400-crore debt.
Besides, the promoters of India's largest realty firm DLF had earlier this month sold a 9.9 per cent stake in the company for about Rs 3,860 crore for raising funds.
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