Parsvnath plans to raise Rs 100 cr through pvt equity

Realty firm Parsvnath Developers is likely to raise about Rs 100 crore this month by selling stake in a housing project to private equity firm.

According to sources, talks are in advanced stage with couple of private equity (PE) firms and deal is likely to be finalised this month.

The company plans to dilute stake in a housing project, they added. Parsvnath Developers spokesperson could not be reached for comments.

Since last year, Parsvnath had raised nearly Rs 440 crore through private placement of equity shares with institutional investors and another Rs 310 crore by selling stakes at project level to private equity firms.

The company had utilised the Rs 750 crore raised through QIP (Qualified Institutional Placement) and PE at project level to cut its debt as well as meet the construction cost. It has reduced its debt to about Rs 1,100 crore from the peak level of Rs 2,200 crore.

Parsvnath has a land bank of 194 million sq ft, of which it is undertaking construction of 80 million sq ft on fast track basis.

Last month, the company announced it had raised Rs 120 crore by selling 24.5 per cent stake in its office complex project at Connaught Place in New Delhi, to private equity firm Red Fort Capital.

This was the third investment by the Red Fort Capital in Parsvnath's projects. Earlier, it had picked 22 per cent stake in a housing project in north Delhi for Rs 115 crore. Besides, Sun Apollo had invested Rs 75 crore in a Gurgaon housing project.