Parsvnath may go public for SEZ funding

With the Centre's nod for its bio-technology and pharma special economic zone (SEZ) in Hyderabad, the Delhi-based realty major Parsvnath Developers Ltd (PDL) is upbeat about its SEZ business.

The company has already set aside funds of around Rs 40,000 crore for at least 12 of its 15 proposed SEZs. However, the company is now mulling other options to fund the projects.

Although, PDL has a history of funding its projects mostly through internal accruals, its managing director Sanjeev Jain doesn't rule out the possibility of getting PDL's subsidiary Parsvnath SEZ listed to fund the SEZ projects.

"We have not made up our minds on the ways to fund these projects. Our previous projects which required an investment of around Rs 20,000 crore were funded from internal accruals and bank loans. There is time for us to decide on taking our subsidiary public or to fund it through internal accruals and financial institutions. We are open to all of these options," said Jain.

Parsvnath has received a formal approval for four of its SEZs and in-principle approval to other eight. Apart from the Kancheepuram multi-product SEZ, all other SEZs would be product-specific.

Recently, PDL also launched the Parsvnath City Centre, a premium mall-cum-multiplex in Ahmedabad. At a project cost of Rs 50 crore, the city centre is expected to be completed within two years, from the date of construction. For the three-screen multiplex, PDL has tied up with the Mumbai-based Movietime Cineplex.

Jain added that the company is also in talks with premium brands like Rado and Lifestyle.

"Many medium level shopping malls have been mushrooming across the country. Also, the Vastrapur area in Ahmedabad needed a high-end place for shopping and entertainment, which is why we have positioned it as a premium mall and we are targeting a premium crowd as well," said Jain.

Overall PDL is investing around Rs 600 crore in residential and commercial projects in Gujarat. Of its 153 million sq ft of land bank, almost 1 million sq ft is in Gujarat, said Jain.