Parsvnath raises Rs75cr by stake sale in housing project

Parsvnath raises Rs75cr by stake sale in housing project

New Delhi: Realty firm Parsvnath Developers on Friday said it has raised Rs75 crore by selling 50% stake in a housing project to global private equity firm Sun Apollo.

“Sun Apollo will invest Rs75 crore for a 50% stake in the project SPV (special purpose vehicle) which will develop Parsvnath Exotica part-II, Gurgaon," the company said in a statement.

Parsvnath has inked an agreement with Sun Apollo for an investment in this project.

“We have earlier joined hands with Red Fort Funds for another premium project Parsvnath La Tropicana in Delhi. This further shows investors’ confidence in Parsvnath Developers," company’s chairman Pradeep Jain said.

Sources had said in October that Parsvnath is in the process of closing two transactions totalling Rs225 crore with private equity firms.

With this deal, Parsvnath has raised Rs360 crore in the last six months through private placement of shares and stake sales at project level. The fund raising exercise is meant to cut its debt amounting to Rs1,600 crore by at least half by the end of this fiscal.

Parsvnath raised nearly Rs170 crore through qualified institutional placements route. The company had raised Rs115 crore from Red Fort Capital by selling 22% stakes in a housing project in Delhi.

The company has a developable area of over 193 million sq ft.