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Delhi Based Developer Ansal API Plans to Raise Rs 650 cr via QIP
| December 23, 2009 |  (Be the first to rate this story!) Loading ... |
Delhi-based real estate developer Ansal API will raise around Rs 650 crore through a qualified institutional placement (QIP) in February, 2010, a banker involved in the process told FE. The company has mandated IDFC-SSKI as its lead banker for the slated QIP. In June, the board of directors of Ansal API had decided to seek the approval of shareholders to issue equity shares, to qualified institutional buyers to raise up to Rs1,500 crore. The company had informed the same to the Bombay Stock Exchange (BSE) as well.
Now, after weathering the slowdown and assessing its financial requirement, the company has decided to go ahead with a QIP of just Rs 650 crore, a company official said. The realty firm is also planning to increase the limit of foreign institutional investors’ (FIIs) in the company to 49% from the present limit of 24%. When contacted a company spokesman said, “We do not comment on market speculation.”
The funds raised through the QIP would be mainly used to retire the company’s debt of Rs 1,000 crore and fund its Rs 2,000 crore megapolis project. 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 and group housing in Lucknow and Dadri. Ansal API, which has built Ansal Plaza, Delhi’s first mall owns majority of commercial real estate in Connaught Place. The promoters of the company feel that via QIP they will be able to mobilise funds faster as there are fewer formalities with regard to rules and regulation, as compared to other rights issue.
Reeling under acute cash crunch, a host of real estate companies are now resorting to QIP and preferential allotment of warrants to promoters to strengthen their cash balance. Realty firms like Unitech, Parsvnath, Sobha Developers, HDIL, Puravankara, Anantraj Industries, Akruti City and Orbit Corp are looking to raise additional long-term funds through sale of shares, mostly through QIP, where shares are sold to institutional investors.
News Published Under: Delhi |
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