Real estate developer Parsvnath Developers today said it has received shareholders' approval to raise up to Rs 2,000 crore through the issue of securities to qualified institutional buyers.
In a filing to the Bombay Stock Exchange (BSE), the company said it has received approvals to raise up to Rs 2,000 crore in long-term funds through the issuance of securities.
The company will raise the amount "by way of Qualified Institutional Placement (QIP) to Qualified Institutional Buyers (QIB)," it added.
The board of the company had earlier sanctioned the implementation of the fund-raising plan over a 12-month period in August, subject to shareholders' approval.
Parsvnath chairman Pradeep Jain had said the company would raise this amount primarily to reduce its debt.
The company's debt stood at about Rs 1,200 crore as of June 30. Earlier, Jain had said the company plans to reduce its debt to Rs 500-700 crore by the end of 2011.
Since 2009, Parsvnath has raised Rs 410 crore through the sale of stake in four projects being developed in the Delhi-NCR to private equity players.
In addition, the company has raised nearly Rs 440 crore through two rounds of private placement of equity with institutional investors to reduce debt.
Delhi-based Parsvnath Developers has a land bank of 193 million square feet, which is spread over 44 cities in 15 states. It is focusing on execution of 54 projects covering 80 million square feet of saleable area.
In February, the company had said it would invest Rs 4,700 crore over the next three years to complete its existing projects. It expects a sales realisation of over Rs 14,000 crore during this period.
Parsvnath had reported a 19.04% fall in its consolidated net profit for the quarter ended June 30 to Rs 25.76 crore. The consolidated total revenue of the company also declined by 15.75% to Rs 216.57 crore.
Shares of the company were trading 2.38% lower at Rs 65.50 apiece in the late afternoon today on the BSE.