Parsvnath pledges 10% shares

NEW DELHI: Delhi-based Parsvnath Developers has pledged more than 10% shares with financial institutions as collateral for loans in different projects, said chairman Pradeep Jain on Monday. "We have over 10% of shares pledged and all of it is for project financing," said Mr Jain, clarifying that promoters have not pledged any shares for their personal investments.

Meanwhile, Parsvnath Developers reported a 96% decline in the profit to Rs 5 crore and a 80% decline in the revenues to Rs 90 crore for the quarter ended December 2008.

The company said it sold a negligible number of homes in the December quarter, without giving the exact number. Mr Jain said property prices have dropped around 10% in new launches.

Parsvnath has Rs 1,800 crore of debt on its balance sheet, of which Rs 75 crore is due in March 2009. The company said it has 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 moratorium on payment for a year," said Mr Jain.