BS reported that Delhi based real estate company Parsvnath Developers is in talks with various private equity funds to raise around INR 600 crore by the end of 2009-10 by selling stakes in its projects.

A key official has said that a major chunk of the funds will go towards repaying debt. Parsvnath has a debt of nearly INR 1,600 crore and plans to reduce it by half by the end of the current financial year.

He disclosed that the company has a total 79 million sq ft of land under development.

Parsvnath recently raised INR 168 crore by selling shares to investors such as Fidelity, Merril Lynch and Morgan Stanley through qualified institutional placement. The company plans to use 70 per cent of proceeds towards debt payment and the remaining amount to fund its projects.

Parsvnath also received INR 25 crore investment from international property fund Red Fort Capital in its Tropicana project in Delhi. With the transaction, Parsvnath got a total funding of INR 115 crore in the project.

(Sourced from Business Standards)