|
| Parsvnath to raise up to Rs 750 cr via QIP |
| Press Trust of India / New Delhi Jul 31, 2009, 15:37 IST |
|
Realty major Parsvnath Developers plans to raise Rs 500-750 crore through private placements of shares within two weeks for reducing its debt and completion of the ongoing projects.
In the first phase, the company is likely to raise $100-150 million (Rs 500-750 crore) through qualified institutional placements (QIPs), sources said, adding that the QIP is likely to be launched in the next two weeks.
"The company is planning to issue fresh shares for the QIP. Post-issue, the promoters stake will come down by 15-20 per cent," a source said.
Earlier, the Parsvnath board of directors had 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.
When contacted, Parsvnath Chairman Pradeep Jain said: "We are planning to raise 100-150 million dollars in the coming days depending on the market conditions."
About 65 per cent of the funds raised would be utilised to cut the company's debt, which currently stands at about Rs 1,600 crore, and rest for completing the existing projects, sources said.
Parsvnath is aiming at reducing its debt to about Rs 600-700 crore by the end of this fiscal.
The company has a land bank of about 193 million sq ft, of which 80 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 few months, many real estate firms, which are facing a huge slowdown in demand for their properties since the last one year, have raised funds through QIPs.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
