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Parsvnath raises Rs 270 cr via QIP to fund projects

This is the second QIP from the company in the past one year. In October 2009, it had raised Rs 168 crore, after selling 1.38 crore shares, mainly to retire debt.

twitter-logo PTI   New Delhi     Last Updated: October 7, 2010  | 11:00 IST

Realty firm Parsvnath Developers on Wednesday said it has raised Rs 269.52 crore through private placement of shares with institutional investors and the funds will be utilised for execution of ongoing projects.

The company, which had launched a qualified institutional placement (QIP) of equity shares last week, will issue 1.9 crore equity shares at Rs 141.57 a piece, Parsvnath informed the Bombay Stock Exchange.

"We decided to raise $60 million (Rs 269.52 crore) through QIP. We got a good response from the investors and received subscription for $67 million," Parsvnath Chairman Pradeep Jain told PTI.

Jain said the company will utilise the funds raised for completion of ongoing projects and not to reduce its debt, which has come down to about Rs 1,300 crore at present from Rs 2,200 crore.

The company is undertaking construction of an 80 million sq ft area on a fast-track basis, out of the total 195 million sq ft of saleable area it possesses, he added.

Post-QIP, the promoters' share in the company will come down by 5-6 per cent, to about 69 per cent.

This is the second QIP by Parsvnath in the past one year.

In October 2009, the company had raised Rs 168 crore via the QIP route, mainly to retire debt. In the previous QIP, it had sold 1.38 crore shares at Rs 121.25 per share.

Besides QIP, Parsvnath had raised Rs 115 crore last year by divesting a 22 per cent stake in a housing project located in Delhi to private-equity firm Red Fort Capital. In another PE deal, the company had raised Rs 75 crore by selling a stake in a Gurgaon housing project to Sun Apollo.

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