After Wednesday blip, Parsvnath QIP opens, to raise Rs270 crore

Delhi-based Parsvnath Developers, after a quick start-stop of its qualified institutional placement (QIP) on Wednesday, opened books on Thursday to raise $60 million, or around Rs270 crore, two sources close to the development said.

The issue comes close on the heels of the QIP by another realtor, Housing Development and Infrastructure Ltd, which raised $250 million.

“Fidelity and JP Morgan have lapped it (the issue) up. Earlier they were looking at closing at Rs200 crore and they are going to close it soon,” a source said.

Elara Capital, Edelweiss Securities and Fortune Group are the bankers to the issue.

The bankers had opened the books on Wednesday but closed them soon, only to reopen on Friday. Sources said the books would be closed late Friday.

The QIP was opened at Rs141.57 per share, the company informed stock exchanges.

Following the issue of fresh shares, promoters’ shareholding will fall to around 68.24%from 74.4%.

Parsvnath has a net debt of Rs1,709 crore and a repayment of Rs550 crore coming up this fiscal.

It had refinanced debt of Rs70-80 crore earlier this year and plans to use proceeds from the QIP, stake dilution in projects and cash flows from new launches for repayment, a source said.
 
For FY09, the company had a debt-to-equity ratio of 0.8.
In the first quarter of this fiscal, Parsvnath had delivered 1.39 million square feet (msf) as against 1.89 msf in FY10.

“However, lower non-operating income (down 34%) and an 8% higher minority interest has depressed PAT to INR 318 million,” Surajit Pal and Saira Ansari of Elara Capital had written in their first-quarter results note.