Parsvnath earmarks Rs 7,000 crore to develop 57 projects

February 02, 2010

Realty firm Parsvnath Developers has announced plans to invest Rs 7,000 crore in the next five years in construction of its ongoing projects. Meanwhile, the company also plans to raise up to Rs 300 crore through private equity by March-end.

"We are currently developing 57 projects, with over 80 million sq ft of area, across the country. Of this, we have put 40 million sq ft on fast track to deliver within the next two years," said Pradeep Jain, chairman, Parsvnath Developers.

Of the total area under construction, about 80 per cent is housing and rest commercial, Jain added.

"Our land is fully-paid and we have to pay only for construction. The construction cost for developing the 80 million sq ft will be about Rs 7,000 crore and these projects will be completed by 2015," said Jain.

Parsvnath is expecting revenue to the tune of Rs 17,000 crore from these 57 projects.

Asked how the company plans to fund these projects, Jain said: "Mostly internal accruals and money coming from sales. We are not willing to increase our debt, in fact in the next 2-3 fiscal, we foresee (Parsvnath) a debt free company."

The company's gross debt as on December 31, 2009, stands at Rs 1,585 crore and plans to bring it down by about Rs 100 crore in this quarter.