The Hindu : Business : Parsvnath to tap market

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Saturday, Oct 28, 2006
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Parsvnath to tap market

Special Correspondent

A part of the proceeds will be utilised for servicing debt

PHOTO: PAUL NORONHA

BOOM TIME: (from left): Atul Mehra, Executive Director, Head, Capital Markets, JM Morgan Stanley Private Ltd., Pradeep Jain, Chairman, Parsvnath Developers, and S. Subramaniam, Chairman, Enam Consultants, at a press conference in Mumbai on Friday.

NEW DELHI: Real estate major Parsvnath Developers Ltd. (PDL), with its foot prints in 14 States and 41 towns across the country, plans to hit the capital market with an initial public offering (IPO) to raise Rs. 1,090 crore to finance the construction of its ongoing projects.

"We are now executing 90 projects, aggregating a salable area of over 108 million sq. ft. We are planning to raise Rs. 1,090 crore to meet the construction cost of 11 projects,'' PDL Chairman Pradeep Jain told media persons here on Wednesday while sharing information on the IPO, which opens on November 6 and closes on November 10.

The public issue comprises 36.33 million shares of Rs. 10 each inclusive of a greenshoe option of 30.88 lakh shares. It follows the book-building route and the company has fixed the price band of Rs. 250-300.

The company would raise Rs. 1,090 crore at the higher band and about Rs. 908 crore at the lower band.

On funding the construction of the remaining projects, Mr. Jain said it would be done through internal accruals and advances from the customers. A part of the proceeds would be utilised for servicing the debts of the company.

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