Realtor Parsvnath Developers Ltd plans to raise 2-3 billion rupees by selling stakes in projects by March and cut its debt, its chairman said on Monday.
Property firms, till recently cash starved by lower sales and risk aversion by lenders, have been steadily raising capital since the mid-2009 as equity and property markets revive.
“We want to raise funds through private equity deals at the project level as we want to de-risk and unlock value,” Pradeep Jain told reporters. He did not provide details.
Since October, Parsvnath has raised 1.9 billion rupees through stake sales in two projects and 1.68 billion rupees by placing shares with institutional investors, to fund construction and reduce debt.
Parsvnath will further cut its debt by 1 billion rupees by March from the current 15.85 billion rupees.
The company will launch three residential projects and one software park in the current quarter, but would remain focused on project execution rather than new launches, Jain said.
Jain said his firm had raised prices by 20 percent in a luxury project in Delhi. Increases in other projects would be ‘selective’ depending on their locations.
Property prices, depressed in 2009, are moving up on cheaper loans and as home buyers return to the market.
On Saturday, Parsvnath said quarterly consolidated profit jumped five times to 250 million rupees and sales more than trebled to 3.04 billion rupees, on faster execution of projects.
Shares in Parsvnath were trading up 1.4 per cent at 130.80 rupees at 3.10 pm in a flat Mumbai market.