NEW DELHI: Parsvnath Developers Ltd, the New Delhi-based realtor, is in advanced talks to sell stake in its special economic zones (SEZ) projects to fund its developmental plans, its top official said.
The realtor is in talks with at least five private equity funds, including Saffron India Real Estate Fund, which has taken a 15% stake in Parsvnath’s subsidiary for the Rs 620 crore project near the Bandra Kurla complex in Mumbai.
“Everything related to the stake dilution for the SEZ project is done, and we expect to make a formal announcement within a month,” Parsvnath chairman Pradeep Jain told DNA Money.
However, Parsvnath neither provided the financial details of the stake sale nor did it give the names of the equity funds.
“We are not facing any cash crunch,” Jain said, dismissing speculation that the company is selling stakes in these projects to tide over liquidity issues. The company’s current net debt stands at
Rs 1,700 crore and the highest rate of interest at which the company has borrowed funds is 12.9%, he said.
Parsvnath will develop 15 SEZs in 10 states over 10 years. These will cover an area of 4,000 acres and involve an expenditure of over Rs 60,000 crore, says the company’s website.
The projects would include seven IT & ITeS SEZs, two for gems & jewellery and one each for multi-product, food processing, leather & leather products, handicraft, automotive & auto component, and biotechnology.
Meanwhile, Parsvnath posted a 27% decline in its first-quarter net profit at Rs 73.97 crore from Rs 102 crore a year earlier. Sales fell to Rs 381 crore from Rs 414 crore.
vivek_s@dnaindia.net
