Parsvnath plans to raise up to Rs 1,000 cr via debentures

Realty firm Parsvnath Developers plans to raise up to Rs 1,000 crore through private placement of non-convertible debentures and is also looking at selling non-core assets to reduce debt.

The company has called an Annual General Meeting on September 23 to seek shareholders' approval on a special resolution related to the private placement of Non-Convertible Debentures.

In the AGM notice, Parsvnath has sought the shareholders approval to offer or invite subscriptions for NCDs on a private placement basis, in one or more tranches, aggregating up to Rs 1,000 crore during the next one year.

"NCDs issued on private placement basis are a significant source of borrowings for the company," it added.

The members' approval has also been sought to authorise the company's board of directors to determine the terms and conditions of the issue of NCDs on private placement basis.

In the company's annual report, Parsvnath Developers Chairman Pradeep Jain told shareholders that the company has laid out a clear set of priorities for the next 12-24 months to improve profitability.

"The strategic focus is on assessing and evaluating our assets, business and markets, and accordingly sell non-core assets that are not aligned with our core business in terms of development potential. We are also working towards asset monetisation by raising long-term capital to reduce the debt," Jain said.

Parsvnath currently has a debt of about Rs 1,200 crore.

In June, the company had announced plans to either sell the land parcels worth Rs 1,000 crore in South and West India or form joint ventures with local builders for development.

Jain told shareholders that the company would streamline the organisational structure and costs.

"The group is also reviewing financing strategies to ensure optimal allocation and use of capital resources. Our renewed commitment to faster execution and timely delivery will enable us to further improve operations and efficiency," he added.

Delhi-based Parsvnath Developers posted 61% fall in consolidated net profit to Rs 6.14 crore for the quarter ended June as against Rs 15.55 crore in the year-ago period.

Total income from operations fell by 49% to Rs 96.34 crore in the first quarter of this fiscal as against Rs 188.86 crore in the corresponding period of previous year.