Parsvnath Developers to reduce debt burden by selling assets
Parsvnath Developer’s chairman Pradeep Jain has got a strategy to raise funds for his company by either selling the land parcels of Rs 1,000 crore in South and West India or form joint ventures with local builders for development. They are looking for bidders for the land parcels they own in southern and western part of the country in cities like Chennai, Hyderabad, Kochi, Goa, Mysore and Palghat.
Parsvnath has 85 acres in Kochi, of which 50 % has already been notified as special economic zone (SEZ) and the process for the next half is in progress. It has 35 acres in Chennai and 75 acres in Mysore. They are in negotiation with some potential buyers and if they get a good price, they will sell them immediately in order to reduce the debt burden from Rs 1,300 crore to Rs 500 crore by March 2016.
The sad news is that Parsvnath Developers reported a consolidated net loss of R22.84 crore for the quarter that ended in March 2014 against a net profit of R14.84 crore a year earlier. Total income from operations dropped by 50% to R90.17 crore during the fourth quarter of last fiscal from R181.87 crore in the corresponding period of previous year.
They feel that the slowdown in the real estate sector is responsible for this loss and since the share prices of its stocks will not go up considerably due to the balance sheet of the previous year, they want to reduce the debt burden by selling off their assets.
Source- The Financial Express
Mysore
Debt of Parsvnath Developers, Parsvnath Developers, Parsvnath Developers Limited, Parsvnath Developers Ltd
