It is reported that realty firm Parsvnath Developers plans to raise USD 35 million through private placements of shares to cut its debt and complete ongoing projects.
Market sources said that Parsvnath is planning to raise USD 35 million through qualified institutional placements route which was launched last week. The added that the company might decide to raise more funds if there is demand from the investors.
The company would issue fresh shares for the QIP. Earlier, Parsvnath had said that it would raise USD 100 million to USD 150 million in the first phase. The company's board of directors had approved raising of up to INR 2,500 crore through various instruments.
Parsvnath will utilize the funds raised through QIP to cut debt, which stands at about INR 1,600 crore and complete the existing projects. It is aiming to reduce debt to about INR 600 crore to INR 700 crore by the end of this fiscal.
The company has a land bank of about 193 million square feet of which 80 million sq ft is under construction. It operates in all the verticals of real estate, including housing, retail, offices, SEZs, hotels and integrated townships.
In the last few months, many real estate firms including Unitech, have raised funds through QIPs to improve their cash flow, which has been severely hit due to huge slowdown in the sector from last one year.
(Sourced from http://www.steelguru.com/news/index/2009/09/30/MTEzOTY4/Parsvnath_to_raise_about_USD_35_million_through_QIP.html)
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