Ansal may raise up to Rs 350 cr from PE deals

Realty firm Ansal Properties & Infrastructure plans to raise up to Rs 350 crore within this year from private equity players by diluting its stake in various projects to fund its ongoing construction activities.

According to sources, Ansal API is in talks with 4-5 private equity firms to raise $50-75 million by diluting stakes in 3-4 townships, being developed in North India.

"The company is aggressively pursuing its development works and is in talks with various PE firms... It is almost in the final stages of negotiations with Red Fort Capital (RFC) for its Gurgaon township -- Esencia," a source said.

RFC is likely to pump in over Rs 150 crore in the project for "some" stake, he said.

When contacted, Ansal API CEO and Joint Managing Director Anil Kumar declined to comment on the development.

The Gurgaon township is being developed in 112 acres of land with about 3 million sq ft of saleable area.

Besides, the company is in advanced stages of discussions to close a deal for Sushant Golf City in Lucknow. It is tying up with a PE fund for a special purpose vehicle, comprising some of the projects within the township, sources said.

In Lucknow, Ansal API is developing a 3,530-acre hi-tech township. Besides, it is also exploring possibilities to raise money from one of its townships in Greater Noida.

Last year, the company had raised Rs 231 crore through private placement of shares to institutional investors for reducing its debt and execute ongoing projects.

Sources said the company is also consolidating its land bank in Gurgaon. It is acquiring 40-50 acres of land for developing group housing projects.

The company currently has a net land bank of over 8,500 acres in various locations across the country.

Last week, Ansal API had reported 4.81% jump in its consolidated net profit for the quarter ended December 31, 2010, at Rs 32.93 crore compared to Rs 31.42 crore in the corresponding period previous year.

The consolidated total revenue during the third quarter of this fiscal increased by 6.50% to Rs 353.17 crore from Rs 331.60 crore in the year-ago period.