Parsvnath seeks shareholders' nod to raise Rs 1,000-cr

Realty firm Parsvnath Developers has sought shareholders' approval to raise up to Rs 1,000 crore through private placement of non-convertible debentures (NCDs).
In a notice of the annual general meeting (AGM), Parsvnath said that the "approval of the members is being sought by way of a special resolution...To enable the company to offer or invite subscriptions for NCDs on a private placement basis, in one or more tranches, aggregating upto Rs 1,000 crore".
NCDs issued on private placement basis are a significant source of borrowings for the company, it added.
Parsvnath in March this year had raised Rs 355 crore through private placement of debentures. The funds were raised from Edelweiss and used to prepay the company's debt.

Earlier this year, Parsvnath got back Rs 572 crore from Chandigarh Housing Board (CHB) after both the parties agreed to accept arbitration award. The realty firm surrendered 124 acres to the CHB.
Parsvnath in October 2006 had entered into an agreement with CHB for the development of housing, commercial and other infrastructure facilities on 123.79 acre project located at Rajiv Gandhi Technology Park.

Parsvnath last month reported a consolidated net loss of Rs 8 crore for the quarter ended June against Rs 6.14 crore in the year-ago period.
Its total income from operations, however, rose to Rs 160 crore during the period as against Rs 96.34 crore in the same quarter of 2014-15.

The company offered possession of about 13.32 lakh sq ft during the quarter as it is focusing on execution and delivery of ongoing projects.
Parsvnath has completed 55 projects and is working on 48 projects with a total area of 69.76 million sq ft.