Ansal Properties raises $52 mn through QIP

Realty firm Ansal Properties and Infrastructure has raised $52 million (over Rs 230 crore) through private placement of shares to institutional investors, sources said.

The company would utilise the funds raised through qualified institutional placement (QIP) to cut its high cost debt and execute ongoing projects.

Investment banking sources said that the company had planned to raise $35 million, but it increased the size of QIP to $52 million on good response from investors both domestic and foreign.

The company would issue shares at about Rs 90 per share. Ansal's shares closed at Rs 91 at Bombay Stock Exchange, down 2.57 per cent from the previous close.

Foreign institutional investors, domestic mutual funds and banks, and non-banking financial companies participated in the QIP process, they added.

Ansal API is planning to reduce its high cost debt by Rs 300 crore this fiscal. It's debt stands around Rs 1,400 crore.

In May, the company's board had approved an enabling resolution to raise Rs 1,000 crore through the QIP route.

Ansal API is developing many projects across the country. It's one of the most prestigious project is 2,500 acre hi-tech city in Dadri, adjoining Greater Noida.

The company has reported a nearly four fold jump in its consolidated net profit at Rs 38.79 crore for the quarter ended June 30 compared to Rs 10.21 crore in the same quarter last fiscal.

The total income rose by 90 per cent at Rs 274.45 crore during the first quarter of the current fiscal as against Rs 144.78 crore in the year-ago period.