Parsvnath board okays proposal to raise Rs.25 billion

May 25th, 2009 - 2:09 pm ICT by IANS  

New Delhi, May 25 (IANS) Taking cue from the other realty majors, the board of real estate firm Parsvnath Developers Monday approved a proposal to raise up to Rs.2,500 crore (Rs.25 billion/$529 million) through qualified institutional placement (QIP).
“The board 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 QIP to qualified institutional buyers (QIB) for raising a sum of up to Rs.2,500 crore,” Parsvnath said in a regulatory statement.

The moves comes after a host of liquidity-parched realtors announced they were looking at the market to raise funds through bond selling and QIP.

Last week, Indiabulls Real Estate raised Rs.2,656.50 crore through placement of securities to QIBs.

The country’s second largest realty firm Unitech had said it would issue warrants worth Rs.1,000 crore to promoters, thereby raising their stake by about 10 percent in the company.

Last month, it had raised Rs.1,600 crore through the QIP route to fund various projects and pay off part of its Rs.8,400-crore debt.

Besides, the promoters of India’s largest realty firm DLF had earlier this month sold a 9.9 percent stake in the company for about Rs.3,860 crore for raising funds.

Apart from that, another real estate major, Housing Development and Infrastructure Ltd (HDIL), had also said it would raise funds through QIP.

In past one year the realty benchmark has lost more than 80 percent in the market amidst slowdown.

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