Parsvnath's 10% shares pledged with financial institutions
Delhi-based Parsvnath Developers has pledged more than 10% shares with financial institutions as collateral for loans in different projects, chairman Pradeep Jain said on Monday.
By Sanjeev Choudhary, ET Bureau |
NEW DELHI: Delhi-based Parsvnath Developers has pledged more than 10% shares with financial institutions as collateral for loans in different projects, chairman Pradeep Jain said on Monday.
"We have over 10% of shares pledged and all of it is for project financing," Mr Jain said, clarifying that promoters have not pledged any shares for their personal investments.
Meanwhile, Parsvnath Developers reported 96% decline in profit to Rs 5 crore and 80% decline in revenues to Rs 90 crore for the quarter ended December '08. The company said it sold a negligible number of homes in December quarter, without giving the exact number. Mr Jain said property prices have dropped around 10% in new launches.
Parsvnath has a total of Rs 1,800 crore of debt on its balance sheet, of which Rs 75 crore is due by March 2009. The company said it has a total of Rs 200 crore cash in hand and is banking on restructuring of loans to sail through the current crisis.
"We have sought restructuring of Rs 300-400 crore worth of loan, whereby we are seeking an extension of payment tenure and a mora-torium on payment for a year," Mr Jain said. He said the company will be forced to work on a lower margin of 20-25% now from 30-35% earlier.
"We have over 10% of shares pledged and all of it is for project financing," Mr Jain said, clarifying that promoters have not pledged any shares for their personal investments.
Meanwhile, Parsvnath Developers reported 96% decline in profit to Rs 5 crore and 80% decline in revenues to Rs 90 crore for the quarter ended December '08. The company said it sold a negligible number of homes in December quarter, without giving the exact number. Mr Jain said property prices have dropped around 10% in new launches.
Parsvnath has a total of Rs 1,800 crore of debt on its balance sheet, of which Rs 75 crore is due by March 2009. The company said it has a total of Rs 200 crore cash in hand and is banking on restructuring of loans to sail through the current crisis.
"We have sought restructuring of Rs 300-400 crore worth of loan, whereby we are seeking an extension of payment tenure and a mora-torium on payment for a year," Mr Jain said. He said the company will be forced to work on a lower margin of 20-25% now from 30-35% earlier.
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