Parsvnath intends raising Rs. 1,000-cr via private placement of NCDs
Real estate firm Parsvnath Developers is apparently mulling plans to raise an amount of up to Rs. 1,000 crore via private placement of non-convertible debentures (NCDs). In addition, the company is also considering the sale of its non-core assets, so as to reduce an approximately Rs. 1,200-crore debt.
In an attempt to seek the approval of the shareholders on a special resolution pertaining to private placement of NCDs, an Annual General Meeting (AGM) has been scheduled by Parsvnath Developers for September 23.
Parsvnath has mentioned in the AGM notice that it intends to seek the go-ahead from the shareholders with regard to its plans for offering or inviting subscriptions for NCDs on a private placement basis.
According to the company, the move related to private placement of NCDs will be undertaken in one or more tranches, which will aggregate up to a total of Rs. 1,000 crore during the next one year.
With the AGM notice also asserting that “NCDs issued on private placement basis are a significant source of borrowings for the company,” Parsvnath Developers Chairman Pradeep Jain told shareholders in the company’s annual report: “The strategic focus is on assessing and evaluating our assets, business and markets, and accordingly sell non-core assets that are not aligned with our core business in terms of development potential.”
Source – The Hindu Business Line
annual general meeting, Assets, business and markets, NCDs, non-core assets, Parsvnath Developers
