Ansal Properties & Infrastructure plans to raise Rs 1500 crore through QIP

New Delhi - June 15, 2009: Ansal Properties & Infrastructure Limited, the flagship company of the Ansal API Group and one of the leading real estate developers today announced its intentions to raise upto Rs 1500 crores by way of Qualified Institutions Placement (QIP).

The Board of Directors at its meeting held on 15th June 2009 has decided to seek the approval of shareholders to issue equity shares, to residents and non resident qualified institutional buyers by way of QIP to qualified institutional buyers for raising a sum of up to Rs 1,500 crore.

Moreover, the APIL Board has today in a filing to the stock exchanges said that the company has decided to seek approvals of the shareholders for making public issue or any other issue, from time to time for raising a sum of up to Rs 2,500 crores, and, further that the ceiling of the shareholding by registered FIIs in the company through Portfolio Investment Scheme in terms of FEMA 1999 be increased from 24% to 49% or statutory ceiling.

Mr. Pranav Ansal, Vice Chairman and Managing Director, Ansla Properties and Infrastructure Limited (APIL) said, "APIL has always strived to deliver value and satisfaction to its customers. As fas as existing projects are concerned we are confident about the delivery of projects as per their scheduled timetable. The raising of funds via the QIP route is a capital raising exercise for APIL to provide both business and financial strength to significantly enhance company's flexibility. This QIP will also be used to partly fund and support the two large hi-tech integrated townships consisting of hotels, buildings, shopping malls, IT parks, banks, group housing etc in Lucknow namely Sushant Hi-Tech City of about 1760 acres and Megapolis in Dadri which spans over 2500 acres."

Mr.Ansal further added: "APIL is keeping a watchful eye on business opportunities that would add shareholder value. We are cautiously optimistic about the upturn of the global property markets, but do not expect the turnaround to be happening in the near short run. However, we will continue to focus on our township projects and look for any and every opportunity to enhance shareholder value in all segments of real estate that we are present in. Of note, the affordable housing projects launched by APIL recently have been very successfully received and has been a trendsetter for the industry. APIL has a view to provide world class infrastructure facilities to its townships and execute outside infrastructure projects as well. In order to maintain a high standard of delivery of the same, APIL, has floated an Infrastructure Company.

Also, with decades of experience of the group in the education sector and to tap its potential, a School Leasing Company has been floated to construct and lease schools in association with Leading Education Company like Educomp and GEMS. This company has also entered into agreements with few of the leading education companies".

The stock closed the day at Rs.60.35, down by Rs.2.65 or 4.21%. The stock hit an intraday high of Rs.64.15 and low of Rs.59.95.

The total traded quantity was 202440 compared to 2 week average of 516411.

Source : Equity Bulls

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