Parsvnath seeks shareholders nod to raise up to Rs 1,500cr
Parsvnath Developers has sought shareholders' approval to raise up to Rs 1,500 crore through issue of equity shares or other securities to finance its projects and pare debt.
New Delhi: Realty firm Parsvnath Developers has sought shareholders' approval to raise up to Rs 1,500 crore through issue of equity shares or other securities to finance its projects and pare debt.
The securities can be issued to public as well as institutional investors through various routes including public offer and Qualified Institutional Placement (QIP) of shares, as also issuance of convertible bonds or depository receipts to foreign investors.
The shareholders' approval has been sought through a special resolution for "raising of additional long-term funds through further issuance of securities", the company said in a filing to the Bombay Stock Exchange.
The proposal would be considered by the shareholders in the annual general meeting (AGM) to be held on September 22.
The resolution seeks to authorise the board to decide on the final contours of any such fund raising exercises.
Parsvnath said the funds raised would be used for the "purpose of meeting its funding requirement for execution of projects, repayment of high cost loans and general corporate purposes and to augment its financial position etc."
The company's debt was about Rs 1,200 crore as on June 30.
When contacted, Parsvnath Developers' Chairman Pradeep Jain said: "It is an enabling resolution. We do not have any immediate plan to raise funds".
It had raised Rs 168.01 crore and Rs 269.52 crore through QIP in October 2009 and October 2010, respectively. No funds were raised during the 2011-12 fiscal.
Parsvnath's share price closed at Rs 38.10 on BSE, down by nearly two percent from previous closing.