Realty major Parsvnath Developers has raised Rs 225 crore through equity sale of two of its projects to private equity investors.

The company plans to utilize the funds to trim down its Rs 1600 crore debt and meet construction cost.

According to market sources, the company has finalized two transactions with private equity firms, where one is valued at Rs 150 crore, while other stand at Rs 75 crore. The firm has sold its stakes in its two projects, which is located in the national capital region (NCR).

With the finalization of these two deals, Parsvnath has raised over Rs 500 crore in the last four months through private placement of shares and stake sales at project level. The company raised the fund in aim to slash its debt amounting to Rs 1600 crore by at least half by the end of this financial year.

Apart from latest development, the company also plans to strengthen its balance sheet by improving cash flow, which was badly hurt due to ongoing slowdown in the property market.

It should be noted that during this week, company has raised $35 million through the QIP (qualified institutional placements) route by issuing shares at Rs 121.25 a share.

Two days earlier, the company has sold its additional 4% stake in a North-Delhi project to Red Fort Capital for Rs 25 crore. It should be noted that company has already sold 18% stake in the same project to Red Fort Capital in June for Rs 90 crore.