Parsvnath Developers' shares gain on land sale plans

Written by PTI | Mumbai | Updated: Jun 25 2014, 20:00pm hrs
Realty firm Parsvnath Developers today gained value in the stock market by about five per cent on the back of plans for sale or development of land parcels worth Rs 1,000 crore in southern and western parts of the country.

The stock rose 4.92 per cent to hit its upper circuit limit of Rs 36.25 in afternoon trade at the BSE. The daily trade volume also surged sharply on robust investor interest.

"We are planning to monetise our land parcels in southern and western parts of the country in cities like Chennai, Hyderabad, Kochi, Goa, Mysore and Palghat. We will sell these plots if we get a good price or form joint ventures with local developers," Parsvnath Developers Chairman Pradeep Jain said.

Asked about the value of these assets, Jain said it would be about Rs 1,000 crore.

The company is in discussion with potential buyers for some of the assets.

Parsvnath is targeting to reduce the debt to Rs 500 crore by March 2016 from existing Rs 1,300 crore. The funds raised from divestment would be primarily used for debt reduction.

Parsvnath Developers reported a consolidated net loss of Rs 22.84 crore for the quarter ended March on lower sales against a net profit of Rs 14.84 crore in the year-ago period.