Parsvnath sells 4 pc stake in a housing project for Rs 25 cr

NEW DELHI: Realty firm Parsvnath Developers on Thursday said it has raised Rs 25 crore by selling further 4 per cent stake in a housing project located in north Delhi to private equity firm Red Fort Capital.

In June, Parsvnath had sold 18 per cent stake in the same premium housing project 'Parsvnath La Tropicana' at Civil Lines in north Delhi to Red Fort Capital for Rs 90 crore.

With this additional stake, the total investment of Red Fort Capital in this 17-acre project would increase to Rs 115 crore from Rs 90 crore, Parsvnath said in a statement. Red Fort Capital has now 22 per cent stake in this project.

The development comes few days after the company raised USD 35 million (about Rs 170 crore) through private placement of shares to reduce its debt and meet construction cost.

"Red Fort Capital's further investment in the project is a healthy indication of the immense faith investors have in Indian realty sector and also their confidence in our execution capabilities," Parsvnath Chairman Pradeep Jain said.

Commenting on the development, Red Fort Capital Managing Partner Parry Singh said: "Our follow on investment in Parsvnath La Tropicana stems from our confidence in the project, it's excellent location and its potential to be a world class development in north Delhi".

The company has got the necessary approvals to develop the project and construction has started. Shares of Parsvnath were trading at Rs 143 on the Bombay Stock Exchange, down 1.28 per cent from previous close.