Parsvnath Developers is looking to raise up to Rs.200 crore by selling stakes in two group housing projects to private equity firms. Industry buzz is that the company is in talks with three- four private equity players to raise funds for its two group housing projects in north India and may seal the deal next month. The funds would be used to meet the construction cost of these two projects, sources claim.
The company could not be contacted. It has raised Rs.410 crore since 2009 by selling stakes at project level to private equity (PEs)- Rs.235 crore from Red Fort Capital and Rs.175 crore from Sun Apollo – for four projects being developed in Delhi-NCR.
The company has also raised nearly Rs.440 crore through two rounds of private placement of equity shares with institutional investors. Parsvnath has a land bank of 193 million sq ft, which is spread over 44 cities in 15 states. The company is focusing on execution of 54 projects covering 80 million sq ft of saleable area, out of which 42.5 million sq ft has been already sold.
In February, the company had said that it will invest Rs.4,700 crore over the next three years to complete its existing projects. It expects a sales realization of over Rs.14,000 crore during this period.
Parsvnath plans to reduce its debt to Rs.500-700 crore by end of 2011 calendar year, company’s Chairman Pradeep Jain had said then. The debt currently stands at Rs.1,200 crore.
Parsvnath shares price closed at Rs.46.60 at Bombay Stock Exchange on Friday last week, down by 1.17 per cent from previous day.
