Ansal to Raise Rs 1,000 Cr through FPO

September 3, 2007	(1 votes, average: 5 out of 5)  Loading ...
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Delhi based Ansal Group announces to raise a whopping Rs 1000 crore through a follow-on-public offer (FPO). The company is holding high talks to finalize a $250 million private equity deal with a London based fund.

The company will soon sign the PE deal and issue FPO the next year. It will use the proceedings for funding its current real estate projects and initiate new projects in hospitality and education sector, informs Sushil Anand, Chairman, Ansal API.

At present, Ansals possess a 7,000-acres landbank, mostly in north Indian states. Apart from its ongoing real estate projects here, Ansals API is also planning to expand horizons into Maharashtra and is undertaking an international project in UAE.

Most big real estate companies are being bullish on raising fund through PE deals. Five prominent companies have hit the capital markets in the past 1 year.  Also, there was a spree for IPO last year. While the renowned Parsvnath Developers raised Rs 1,000 crore, Bangalore-based Sobha Developers garnered Rs 500 crore from the capital markets.

Currently, there are many PE deals to take place in Indian real estate soon. Citigroup has acquired a 5% stake in Ansal API for around Rs 175 crore.  Although, not many PE investments are happening at company level but stand at the project level, where the company obtains the PE fund in special purpose vehicles (SPVs).

News Published Under:   Real Estate Developers |

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