Parsvnath to raise Rs 240 cr via stake sale
The Financial Express, December 15, 2009, Page 4
Rajat Guha, New Delhi
Delhi-based realtor Parsvnath Developers plans to raise around Rs 240 crore by diluting its holdings to private equity funds in its various residential as well as commercial projects. The process is expected to be complete by the end of fiscal 2009-10, company chairman Pradeep Jain told FE.
"We are in constant talks with investors for funding requirements. I am reasonably confident that we would be able to raise Rs 242 crore by the end of this fiscal," Jain said.
So far, Parsvnath has raised Rs 115 crore from Red Fort Capital in two tranches — Rs 168 crore from qualified institutional placement (QIP) and Rs 75 crore from Sun-Apollo, a real estate private equity fund.
Last week, Parsvnath offloaded around 50% stake in a special purpose vehicle that is to be set up to execute the Parsvnath Exotica Part-II project in Gurgaon.
Sun Apollo, a $630-million, India-focused realty fund, is a joint venture between Sun Group led by Delhi-based Khemka family and US-based AREA Property Partners.
With this deal, Parsvnath Developers has raised Rs 358 crore in the last six months through private placement of shares and stake sales at project level. The fund-raising exercise is meant to downsize its debt amounting to Rs 1,600 crore by at least half by the end of this fiscal. Parsvnath posted nearly three-fold jump in its net profit at Rs 61.42 crore for the quarter ended September 30, against Rs 21.90 crore in the year-ago period. Its total revenue, however, declined to Rs 200.77 crore from Rs 226.36 crore in the review period.
Jain added that the company is not looking to launch any new projects and would concentrate on delivering the existing 42 million square feet of properties in the next 24 months, of which 90% belong to the residential segment. Parsvnath has already received revenue of Rs 3,500 crore from these projects and additional Rs 3,500 crore is expected during the completion and possession process. "I expect 2010 to be slightly better than 2009 and margins would remain at healthy levels of 25-30%," Jain said.
The Financial Express, December 15, 2009, Page 4
Rajat Guha, New Delhi
Delhi-based realtor Parsvnath Developers plans to raise around Rs 240 crore by diluting its holdings to private equity funds in its various residential as well as commercial projects. The process is expected to be complete by the end of fiscal 2009-10, company chairman Pradeep Jain told FE.
"We are in constant talks with investors for funding requirements. I am reasonably confident that we would be able to raise Rs 242 crore by the end of this fiscal," Jain said.
So far, Parsvnath has raised Rs 115 crore from Red Fort Capital in two tranches — Rs 168 crore from qualified institutional placement (QIP) and Rs 75 crore from Sun-Apollo, a real estate private equity fund.
Last week, Parsvnath offloaded around 50% stake in a special purpose vehicle that is to be set up to execute the Parsvnath Exotica Part-II project in Gurgaon.
Sun Apollo, a $630-million, India-focused realty fund, is a joint venture between Sun Group led by Delhi-based Khemka family and US-based AREA Property Partners.
With this deal, Parsvnath Developers has raised Rs 358 crore in the last six months through private placement of shares and stake sales at project level. The fund-raising exercise is meant to downsize its debt amounting to Rs 1,600 crore by at least half by the end of this fiscal. Parsvnath posted nearly three-fold jump in its net profit at Rs 61.42 crore for the quarter ended September 30, against Rs 21.90 crore in the year-ago period. Its total revenue, however, declined to Rs 200.77 crore from Rs 226.36 crore in the review period.
Jain added that the company is not looking to launch any new projects and would concentrate on delivering the existing 42 million square feet of properties in the next 24 months, of which 90% belong to the residential segment. Parsvnath has already received revenue of Rs 3,500 crore from these projects and additional Rs 3,500 crore is expected during the completion and possession process. "I expect 2010 to be slightly better than 2009 and margins would remain at healthy levels of 25-30%," Jain said.
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