Parsvnath Developers hits the roof after clarification

Parsvnath Developers hit an upper circuit limit of 5% at Rs 36.25 at 14:49 IST on BSE after the company clarified that it may sell its non-core assets if the assets fetch a good price.

The company issued clarification during trading hours today, 25 June 2014.

Meanwhile, the BSE Sensex was down 27.75 points, or 0.11%, to 25,341.15.

On BSE, so far 6.60 lakh shares were traded in the counter, compared with an average volume of 1.70 lakh shares in the past one quarter.

The stock hit a low of Rs 35.30 in early trade. The stock hit a 52-week high of Rs 37.90 on 10 June 2014. The stock hit a 52-week low of Rs 22.25 on 7 February 2014.

The stock had outperformed the market over the past one month till 24 June 2014, rising 4.07% compared with 2.74% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 44.56% as against Sensex's 15.02% rise.

The small-cap company has an equity capital of Rs 217.59 crore. Face value per share is Rs 5.

Media reported that Parsvnath Developers plans to divest land parcels worth Rs 1000 crore to raise funds.

Parsvnath Developers clarified that its chairman had told the media that the company is planning to reduce its debts by divesting some of its non-core assets in southern and western India and concentrate on its home market in northern India.

The company clarified that there are no specific negotiations going on in this regard and the company may either sell the non-core assets if the assets fetch a good price or enter into joint venture arrangements, in case such assets do not fetch a reasonably good price.

Accordingly, information will be sent to stock exchange as and when any actual development takes place regarding sale of assets or joint venture arrangements, as the case may be, the company added.

On a consolidated basis, Parsvnath Developers reported net loss of Rs 22.85 crore in Q4 March 2014 compared with net profit of Rs 14.83 crore in Q4 March 2013. Net sales fell 50.1% to Rs 89.38 crore in Q4 March 2014 over Q4 March 2013.

Parsvnath Developers is one of india's leading real estate developers, with pan India presence across 44 cities in 15 states. Parsvnath Developers has a diversified portfolio which includes, integrated townships, group housing, commercial complexes, hotels, it parks, BOT projects, SEZs and third party contracting. As on date, the company has total developable area of over 195.82 million square feet across all real state verticals.

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