The Hindu Business Line : Parsvnath raises Rs 225 cr through stake sale in projects

NEW DELHI: Realty major Parsvnath Developers is understood to have raised Rs 225 crore through equity sale of two of its projects to private equity investors and plans to utilise the funds to reduce its Rs 1,600 crore debt and meet construction cost.

According to market sources, the company has closed two transactions - one of Rs 150 crore and another Rs 75 crore - with private equity firms. The company has sold stakes in its two projects located in the national capital region (NCR).

When contacted the company's spokesperson declined to comment. With these two deals, Parsvnath has raised over Rs 500 crore in the last four months through private placement of shares and stake sales at project level.

The fund raising exercise is meant to cut its debt amounting to Rs 1,600 crore by at least half by the end of this fiscal. The company also intends to strengthen its balance sheet by improving cash flow, which has taken a hit due to slow down in the prop erty market and global financial crisis.

During this week, Parsvnath raised $35 million (nearly Rs 170 crore) through the QIP (qualified institutional placements) route by issuing shares at Rs 121.25 a share. The company yesterday announced selling additional four per cent stake in a North-Delh i project to Red Fort Capital for Rs 25 crore.

In June, it had sold 18 per cent stake in the same project to Red Fort Capital for Rs 90 crore. - PTI

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