Parsvnath to raise 2000 Cr to reduce debt
Parsvnath Developers Limited, one of India’s leading Real Estate Developers, got its stakeholders' consent to raise up to Rs 2,000 crore through the issue of securities to qualified institutional buyers in long term. The company proposes to raise the amount using Qualified Institutional Placement (QIP) to Qualified Institutional Buyers (QIB). The board members had already sanctioned the implementation of the fund-raising proposal once the shareholders approve of it.
Pradeep Jain, Chairman, Parsvnath Developers Limited, said the company planned to raise this amount mainly to reduce its debt. The company had a debt of around Rs 1,200 crore as of June 30. The company hopes to reduce it to Rs 500-700 crore by the end of 2011. Its debt reduction initiatives started in 2009, when it raised Rs 410 crore through the sale of stake in four projects being developed in the Delhi-NCR to private equity players. It also raised nearly Rs 440 crore through two rounds of private placement of equity with institutional investors.
By the end of April-May-June quarter there was a 19.04 per cent fall in its consolidated net profit to Rs 25.76 crore. The consolidated total revenue of the company declined by 15.75 per cent to Rs 216.57 crore.
The company in its earlier announcement declared it would invest Rs 4,700 crore in the coming three years to complete its existing projects. The company also anticipates a sales realization of over a whopping Rs 14,000 crore during this period.
Parsvnath Developers Limited has a pan India presence across 44 cities in 15 states. It has a land bank of 193 million square feet, which is across these 44 cities. Currently it is focusing on the execution of its unique 54 projects that covers 80 million square feet of total saleable area.