Parsvnath to use QIP route for raising Rs 2,500 crore

Parsvnath Developers has announced a plan to mop Rs 2,500 crore through the Qualified Institutional Placement (QIP) route. The funds will be used to reduce its debt and expedite completion of ongoing projects.

Due to a cash crunch, the company had to slow down a majority of its ongoing projects in residential, hospitality and SEZ (special economic zone) segments. Parsvnath had plans to develop 17 SEZs. While it has acquired land for six, 11 SEZs have been put on hold.

Meanwhile, the developer has reported a decline of 89.13 per cent in its consolidated net profit at Rs 11.61 crore for the fourth quarter ended March 31, 2009. The company had a net profit of Rs 106.86 crore in the corresponding period last year.

The company's revenue for the March quarter fell by 96 per cent to Rs 19.96 crore compared with Rs 506.77 crore for the corresponding period last year. Parsvnath's full year profit for the year ended March 31, 2009, fell by 73.39 per cent to Rs 112.9 crore as against Rs 424. 39 crore for the corresponding period last year.