Parsvnath promoters revoke pledge on over 5 crore shares

The promoters of Parsvnath Developers have revoked over 5 crore shares, equal to about 12% of their stake in the realty firm, pledged with the financial institutions.

The promoters currently have 68% stake in Parsvnath Developers, out of which shares amounting to 64% stakes were pledged with financial institutions as collateral.

Pledge has been revoked on over five crore shares over past few weeks and now only 52.5% stakes are pledged with the financial institutions, according to filings to the Bombay Stock Exchange.

The national capital-based Parsvnath Developers has a land bank of 193 million sq ft, which is spread over 44 cities in 15 states.

At present, the company is focusing on execution of 54 projects covering 80 million sq ft of saleable area, out of which 42.5 million sq ft has been already sold.

In February, the company had said that it will invest Rs 4,700 crore over the next three years to complete its existing projects. It expects a sales realisation of over Rs 14,000 crore during this period.

Since 2009, Parsvnath has raised Rs 410 crore by selling stakes at project level to private equity (PEs)-- for four projects being developed in Delhi-NCR.

Besides, the company has also raised nearly Rs 440 crore through two rounds of private placement of equity shares with institutional investors to reduce its debt that currently stands at about Rs 1,200 crore.

Parsvnath Chairman and Managing Director Pradeep Jain had said that the company plans to reduce its debt to Rs 500-700 crore by end of 2011 calendar year.

According to sources, the company is in talks with three- four private equity players to raise up to Rs 200 crore for its two group-housing projects in north India.