MANOJa

Delhi-based real estate company, Parsvnath Developers is close to selling stake in its Parsvnath City project in Sonepat for Rs 100 - 150 cr, a person familiar with the development said on condition of anonymity.
The company is currently in talks with 2 private equity firms for the stake sale in the SPV. Sources indicate that Parsvnath is currently talking to JP Morgan and Redfort Capital to sell around 25% stake in the project for Rs 100 - 150 cr.

When contacted, Pradip Jain, Chairman of Parsvnath Developers denied the possible stake sale to JP Morgan or Red Fort Capital.

Parsvnath City is a project developed by the realty firm in Sonepat which is 17 kms away from NH1. Parsvnath Developers has net debt of over Rs 1200 cr on its books.

An analyst who did not wish to be named said that Parsvnath Developers has a huge debt and insufficient funds could jeopardize future projects. The company still has to retire debt to the tune of Rs 100 cr till the end of the financial year.

The stock of Parsvnath Developers was up 8.5% after the story was broken on ET NOW.