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| Parsvnath to raise Rs 500-750 cr in first phase |
| Press Trust of India / New Delhi Jun 02, 2009, 14:22 IST |
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Realty major Parsvnath Developers plans to raise Rs 500-750 crore through private placements of shares by the end of this month for reducing the company's debt and completion of its ongoing projects.
In the first phase, the company is likely to raise $100-150 million (Rs 500-750 crore) through qualified institutional placements (QIP), sources said.
The company's board has approved raising of up to Rs 2,500 crore through various instruments, including issue of further securities to persons other than the existing equity shareholders of the company and also by way of QIP to qualified institutional buyers.
The company has called an extra-ordinary general meeting (EGM) on June 20 to take shareholders' nod on the proposal.
The funds raised would be utilised to cut the company's debt, which currently stands at about Rs 1,600 crore, and complete its existing projects, sources said.
Parsvnath is aiming at reducing its debt by at least half by end of this fiscal. While Rs 400 crore of the required Rs 800 crore will come from internal accruals, the remaining would be raised through QIPs, they added.
The company has a land bank of over 200 million sq ft, of which 81 million sq ft is under construction.
Parsvnath, which has presence across 50 cities and 17 states, is operating in all the verticals of real estate that includes housing, retail, offices, SEZs, hotels, IT Parks and integrated townships.
In the last two months, several real estate companies, which are facing a huge slowdown in demand for their properties since the last one year, have raised funds through QIPs.
Unitech, the country's second-largest realty firm, had raised Rs 1,620 crore through QIPs to fund various projects and pay off part of its debt.
Indiabulls Real Estate had raised Rs 2,656 crore through placement of securities to QIBs, while HDIL had said it would raise funds by way of QIP.
The promoters of DLF, India's largest realty firm, had sold nearly 10 per cent stake in the company for about Rs 3,860 crore.
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