Parsvnath gets shareholders nod to raise Rs 1,000 cr via NCDs

NEW DELHI: Realty firm Parsvnath Developers' shareholders have approved the company's special resolution to raise up to Rs 1,000 crore through private placement of non-convertible debentures (NCDs).

The company in March this year had raised Rs 355 crore through private placement of debentures. The funds were raised from Edelweiss and used to prepay the company's debt.

The special resolution to seek approval for private placement of NCDs was passed with requisite majority, Parsvnath said in a regulatory filing.

In a notice of the annual general meeting (AGM), Parsvnath had said that the "approval of the members is being sought by way of a special resolution... to enable the company to offer or invite subscriptions for NCDs on a private placement basis, in one or more tranches, aggregating upto Rs 1,000 crore".

NCDs issued on private placement basis are a significant source of borrowings for the company, it added.

Besides raising funds through NCDs, Parsvnath got back Rs 572 crore earlier this year from Chandigarh Housing Board (CHB) after both the parties agreed to accept arbitration award. The realty firm surrendered 124 acres to the CHB.

Parsvnath had entered into an agreement with CHB in 2006 to develop housing, commercial and other infrastructure facilities on 124 acre project.

Meanwhile, the company is focusing on execution and delivery of ongoing projects and is not launching any new projects. It is also looking to monetise its land parcels in South India to focus on north India.

Parsvnath reported a consolidated net loss of Rs 8 crore for the quarter ended June. Its total income from operations, however, rose to Rs 160 crore during the period as against Rs 96.34 crore in the same quarter of 2014-15.

Parsvnath is currently working on 48 projects with a total area of 69.76 million sq ft.