Ansal Properties and Infrastructure to raise Rs 203 crore through issue of securities

APIL, the flagship Company of the Ansal API Group and one of the leading real estate developers today announced that IPRO Funds Ltd., Mauritius, a reputed registered Foreign Institutional Investor {FII} has given its intention to subscribe up to 1,26,11,233 Nos. of Equity Shares of the Company, in terms of SEBI {DIP} Guidelines.

APIL also announced that the Promoters of the Company have agreed to subscribe to 1,65,12,838 Warrants of the Company in terms of the said Guidelines. The issue of both the shares and the warrants will be made by way of preferential issue and the total amount to be raised as a long term funding process will be to the tune of about Rs. 203 crore. The Board of Directors at its meeting held on August 28, 2009 has decided to seek the approval of shareholders at the next AGM to be held at New Delhi on September 29, 2009 for the issue of equity shares and warrants on a preferential basis. Issue and allotment is expected to be completed by mid-October 2009.

Mr. Pranav Ansal, Vice Chairman and Managing Director, Ansal Properties and Infrastructure Ltd (APIL) said, "APIL has always strived to deliver value and satisfaction to its customers. As far as existing projects are concerned we are confident that delivery of projects will happen as scheduled. The raising of funds via the preferential route from IPRO Funds Ltd., Mauritius is an indication of the continuing confidence of foreign investors in the Indian real estate sector"

Mr. Ansal further added, "It is also gives a positive signal that long term association with APIL will be beneficial to the interest of both the investor and us as a company. The issue of equity to foreign investors highlights the long term stability of APIL as a company and its business model This capital raising exercise of APIL will provide both business and financial strength to complete the ongoing projects & propel faster growth. The inflow will be used to further the objectives of the Company to speed up the implementation of its business plans which is expected to reflect the true intrinsic value of the Company. It will also 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 adjoining Greater Noida which spans over 2500 acres."

APIL is keeping a watchful eye on business opportunities that would add shareholder value. The Company is continuously looking for every opportunity in the core real estate space, however, the key focus of the Company as always will be to complete and deliver its existing and ongoing projects on time bound basis.

APIL has always believed in its core business of real estate and continues to concentrate on consolidating and creating efficiencies out of the existing operations and create value products for the customers. APIL is not new to the affordable housing segment and therefore the expertise and know-how has been developed by the Company over a period of time. Also, with decades of experience in the education sector and to tap its potential, the School Leasing Company already floated by the Group, will be getting into construction and leasing of schools in association with leading education brands like Educomp and GEMS (Dubai).

Some prestigious highlights are as follows:

- Launched two Hi-Tech Townships, one in Lucknow spread over 1765 acres and another one in adjoining Greater Noida, spread over 2500 acres.
- Executing Integrated Townships in the States of Rajasthan spread over 840 acres, Punjab spreading over 320 acres, Haryana around 1490 Acres and Uttar Pradesh over 700 Acres.
- APIL has launched Affordable Housing projects beginning in December, 2008 in the States of Rajasthan and Uttar Pradesh and floors in Haryana and received overwhelming response. The Company is also proposing to launch affordable housing projects in the States of Punjab and Haryana Recent tax benefits announced by the Government on affordable housings and also industrial townships will benefit the Company.
- Plans to increase funding using routes such as QIP to increase appreciably the Company's financial and business strength.

The stock closed the day at Rs.75.90, down by Rs.4.65 or 5.77%. The stock hit an intraday high of Rs.82 and low of Rs.74.60.

The total traded quantity was 973218 compared to 2 week average of 2221199.

Source : Equity Bulls

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