HDIL, has put nearly 5 million sq ft of land parcels at Virar, near Mumbai, on the block. The firm expects the sale to fetch around Rs 650 crore in the next few weeks, and intends to repay debt with the proceeds. Of the total 5 million sq ft, a local developer, Vinay Unique Construction, has already bought one million sq ft, at Rs 1,250 a sq ft. In a bid to mobilise funds and repay debt, the company aims to sell 15-20 million sq ft of floor space index from its land bank in the Vasai-Virar region, on the outskirts of Mumbai, in the next 15-18 months.
As of June 30, 2011, HDIL’s standalone debt stood at Rs 3,820 crore, after repaying Rs 307 crore of loans and raising Rs 170 crore in debt during the quarter. The company’s debt on a consolidated basis was Rs 4,180 crore at the end of the first quarter. The company have reduced its debt by 4% during Q1. With this, its net debt equity ratio stands at 0.4. The company plans to reduce debt by 15-20% by the end of the current financial year. Earlier this year, it sold around 2 million sq ft of FSI generated through redevelopment of Siddharth Nagar in Goregaon to Kalpataru Properties, Ekta World, and a few small developers.