Ansal Properties & Infrastructure to raise funds through Preferential Issue, QIP

The Board of Directors of Ansal Properties and Infrastructure Ltd (Ansal API) today approved preferential allotment of Equity shares to a set of investors including Enarm Investment Services Pvt. Ltd. The Company will allot a total of 85.5 lakh shares, amounting to 6.94% stake in the pre-issue capital of the Company. The price is Rs. 82.50 per share which is Rs.5/- per share towards face value and premium of Rs. 77.50. The Company will raise about Rs 71 crore through the preferential issue of shares.

The Ansal API Board, which met here today, has also approved an enabling resolution for raising upto Rs 1,000 crore through the Qualified Institutions Placement (QIP) route. Depending on the market conditions, the Company will decide the timing for the proposed QIP. The Company will now seek its Shareholders approval for both Preferential Issue and QIP through a Postal Ballot. Post preferential issue, the promoters holding in the company will come down to about 55.5% from the existing about 59.4%. The FIIs currently hold close to 13% stake in the company.

This is the second time in a period of seven months, Ansal API is making a preferential issue, the first being in November 2009 when the company made a preferential allotment of shares to the Mauritius-based IPRO Funds. Ansal API had raised about Rs 70 crore through the preferential issue to IPRO. The company had also decided to issue 1,65,12,838 Warrants to Promoters @ Rs. 70 /- per warrant which await regulatory approval.

A total of five entities will be issued shares through the proposed preferential issue. The preferential allotment to the five entities will have a lock-in period of one year from the date of allotment. Enam Securities is part of the leading financial services group Enam, founded by formidable four of Dalal Street, Mr. Manek Bhanshali, Mr. Nemish Shah, Mr. Vallabh Bhanshali and Mr. Jagdish Master.

"The funds raised through the preferential allotment will be used for part-financing our on-going projects and for expansion of business in various States," said Mr. Pranav Ansal, Vice Chairman and Managing Director, Ansal API.

Ansal API currently has about 19 township projects spread over five major states in Northern India under various stages of implementation. Of these, the 3500 acre Sushant Golf City Hi-tech township project and the 2500 acre Megapolis Hi-tech township projects are the most ambitious projects of the company. These two projects, which are being implemented in phases over a 5-10 year period, will see massive investments to develop state-of-the-art residential, commercial, retail, hospitality, leisure, healthcare and educational projects.

The company has recently launched Northern India's first sector specific Special Economic Zone (SEZ) project, Pioneer Agro-Food SEZ at Murthal, near Sonepat in Haryana. The 250 acre SEZ will host a number of agro and food processing units, besides state-of-the-art storage facilities. The proposed QIP is aimed at raising funds to fund a host of new and ambitious projects being planned by the company. These projects are expected to be launched over the next 12-24 months period.

The Shareholders had given the go ahead for a Rs 1500 crore QIP issue last July. However, the company did not proceed with this issue due to not so favorable market conditions. An enabling resolution for a QIP issue has a validity period of one year.

The stock was trading at Rs.90.85, up by Rs.3.25 or 3.71%. The stock hit an intraday high of Rs.92.30 and low of Rs.87.15.

The total traded quantity was 1719807 compared to 2 week average of 604340.

Source : Equity Bulls

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