Parsvnath open to going public for SEZ funding

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

The company has already set aside around Rs 40,000 crore for at least 12 of its 15-odd proposed SEZs. However, the company is now mulling options to fund these 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 how to fund these projects. Even most of our previous projects which required an investment of around Rs 20,000 crore were funded through internal accruals and banks. There is some time before we decide whether to go public with our subsidiary or to fund it through internal accruals and financial institutions. We are open to any of these options," said Jain.

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

Recently, PDL also launched 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 date of construction.

For the 3-screen multiplex, PDL has tied-up with Mumbai-based Movietime Cineplex. Jain added that the company is also in talks with premium brands like Rado and Lifestyle.

"Lot many medium level shopping malls have been mushrooming across the country. 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 are targeting a premium crowd as well," said Jain.