Parsvnath to raise Rs 168 cr through QIP

Realty firm Parsvnath Developers plans to raise $35 million (about Rs 168 crore) through private placements of shares to cut its debt and complete ongoing projects.

Parsvnath is planning to raise $35 million through qualified institutional placements (QIP) route, which was launched last week, market sources said.

The company might decide to raise more funds if there is demand from the investors, they added. The company would issue fresh shares for the QIP.

Earlier, Parsvnath had said that it would raise $100-150 million  in the first phase.

The company's board of directors had approved raising of up to Rs 2,500 crore through various instruments.

Parsvnath will utilise the funds raised through QIP to cut debt, which stands at about Rs 1,600 crore, and complete the existing projects. It is aiming to reduce 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. It operates in all the verticals of real estate, including housing, retail, offices, SEZs, hotels and integrated townships.

In the last few months, many real estate firms, including Unitech, have raised funds through QIPs to improve their cash flow, which has been severely hit due to huge slowdown in the sector from last one year.