The shareholders of the real estate giant, Parsvnath developers today said it has received shareholders’ approval to raise up to Rs 2,000 crore through the issue of securities to qualified institutional buyers.
The company shall raise long term funds via the route of QIPs and issue it to the QIBs, said the company officials in the filing process at theBombay Stock Exchange.
The board of directors of the company had earlier during the year sanctioned a fund raising plan for a full year period that was subjected to approvals from the shareholders of the company. Such raise was mainly an action to reduce the debt of the company which stood at Rs. 1200 crores as on data published on june 30 and the company planned to reduce it by almost half up to Rs. 500 to Rs. 700 crore.
The company has been raising money through private placement since 2009 mainly with a motive to reduce their debt. Reportedly, Rs. 419 crores had been raised through stake issue to the private players for various projects that were underway in the Delhi and NCR region
The company has shown impressive performance and the current order book brings in more confidence among the prospective investors as it plans to Rs. 4700 crore over the coming 3 years.
‘Bell the Bull’ says that the long term prospect of the stock looks good but present dip in stock prices on the BSE can mainly be attributed to the revenue decline in the quarterly result updates. This can be discounted with the fact that the real estate sector isn’t doing well given the global weakening economic scenario.