Parsvnath board approves proposal to raise up to Rs 2,500 cr

Parsvnath board approves proposal to raise up to Rs 2,500 cr
The Hindu Business Line, May 26, 2009, Page 3

Our Bureau, New Delhi

Parsvnath Developers announced on Monday that its board of directors have approved a proposal to raise up to Rs 2,500 crore by issuing fresh shares to institutional buyers.

The company informed the BSE that the board at its meeting held on May 23, “has decided to raise funds by various means including through issuance of further securities to persons other than the existing equity shareholders of the company, and also by way of Qualified Institutions Placement (QIP) to qualified institutional buyers for an aggregate sum of up to Rs 2,500 crore.”

Ever since the Unitech’s QIP last month, realty firms have been lining up to ‘cash-in’ on the improved investor sentiments for realty stocks.

In April, Unitech’s raised Rs 1,625 crore through a QIP issue and this was followed by a stake sale by DLF promoters, to raise for Rs 3,860 crore.

Indiabulls Real Estate, too, raised Rs 2,656 crore through issue of shares on institutional placement basis; and Housing Development & Infrastructure Ltd (HDIL) last week announced plans to raise over Rs 2,800 crore from sale of shares.