The subsidiary companies was expected to construct a real estate project in Raidurg in Hyderabad.
The three subsidiaries include Purva Land Ltd, Purva Marine Ltd and Purva Hotels Ltd. “The 20 acre land along with the 100% shares in the above companies were sold a Hyderabad-based company,” said a person having direct knowledge of the deal.
Puravankara confirmed to stock exchange that they had concluded the deal.
Earlier last week, Puravankara Projects’ board had passed an enabling resolution to exit its Rs 403 crore investment at Raidurg Panamaktha Village. This will involve the sale of all shares held in three wholly owned subsidiaries. The company had bought the land in 2007 through open auction from APIIC. It had wanted to exit from the project in the last few years.
“Puravankara wanted to build a hotel project in the land and incorporated the subsidiary company in 2007. It now see a potential in exiting the land as the valuation has increased,” he added.
Puravankara Projects has significant presence in Bengaluru, kochi, Chennai, Hyderabad and Mysore. The company plans to use the money for reducing debt,” he added. The company has a net debt of Rs 2350 crore. “Puravankara is preparing at the balance sheet level to look for distress opportunities in the market and also take up half complete projects that needs fund for completion,” said the earlier source.
Puravankara has 23.7 million sq ft of residential properties under construction with 6 million sq ft expected to be delivered by the mid of this year. It has a land bank of 75 million sq ft as on March 2017.