Ansal Properties & Infrastructure Limited to garner funds upto Rs. 100 crore

Ansal Properties and Infrastructure Limited (referred to as "Ansal API" or the "Company", NSE: ANSALAPI, BSE: 500013), one of the oldest and leading real estate developers in Northern India, held a board meeting on the 18th of December, 2020 to consider the issue and allotment of Warrants to non-promoter (Public) investors in line with the Companies Act, 2013 & SEBI regulations governing the issue of Warrants. The Board has considered and approved the issue and allotment of 5,00,10,000 Nos. of Warrants to Non Promoter (Public) investors, which would eventually be converted into Equity share of the company giving the investors 5,00,10,000 Nos. of Equity shares representing 24.11% of the post issue equity outstanding. For this, a total of Rs. 35 Crores will be invested through Warrants and shall be utilised for reducing debt and speed up development on existing projects.

The Board also took note of the fact that capital raise has become necessary to expand the permanent capital base as against the debt / working capital. The board also commented that with the changing environment of doing real estate business, company needs to rely more on equity and permanent capital sources. Board also discussed the, importance to reduce debt at a much faster pace and eventually become debt free.

Commenting on the outcome of the board meeting, Mr. Pranav Ansal, Vice Chairman and Whole Time Director of Ansal Properties and Infrastructure Limited said: "The company has plans to raise of = 100 crores through various means and todays decision to issue warrants to non promoters to raise Rs. 35 Crores is the first step in this direction. The decision strengthens the fact that the management continues to focus towards streamlining the operations and reduce the number of projects which are ongoing. We are committed to reduce the debt at a very fast pace as has been done in the past 12 to 18 months by settling debts with various lenders. Since the funds would be required immediately, therefore the capital raise of Rs. 35 Crores has been structured to ensure the inflow of funds in a short span of time. Company is exploring other options also to raise further capital to garner close to = 100 Crores in the next few months. As and when deals are materialised, it shall be informed to the Board and necessary approvals shall be taken.

With Covid situation, there has been a sluggish response in the last 3 quarters in sales and collections and therefore capital raise would provide the necessary impetus to reduce debt of the company. Management has been working tirelessly towards completion of the existing projects and allocate necessary funds to fast track developments of projects which are in the last mile stage. This will ensure that customers get their properties and commitments made by the company are fulfilled at the earliest. Capital management in the new age of doing real estate business has become all the more important and sufficient capital raise needs to be done to manage the company affairs efficiently.

The Company will continue to focus on execution of the projects and completing the existing projects. There is focus to complete and deliver real estate products in the best possible timelines. At this moment, the company does not seek new projects to be undertaken till the current projects are executed and completed. Simultaneously, the company is also geared up to reduce the debt at a very fast pace to reduce the interest burden and save on cash flows to infuse into the projects.

Shares of ANSAL PROPERTIES & INFRASTRUCTURE LTD. was last trading in BSE at Rs.7.58 as compared to the previous close of Rs. 7.22. The total number of shares traded during the day was 86494 in over 137 trades.

The stock hit an intraday high of Rs. 7.58 and intraday low of 7.05. The net turnover during the day was Rs. 650235.

Source : Equity Bulls

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