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    Ansal Properties to raise Rs 100 crore, to focus on completion of existing projects

    Synopsis

    Real estate developer Ansal said it will raise Rs 35 crore through issue of warrants to non-promoters, as part of its plan to raise Rs 100 crore in the next few months.

    Building AgenciesAgencies
    Real estate developer Ansal said it will raise Rs 35 crore through issue of warrants to non-promoters, as part of its plan to raise Rs 100 crore in the next few months. Ansal Properties and Infrastructure Limited, in its board meeting on Friday, approved the issue and allotment of 5,00,10,000 Warrants to Non Promoter (Public) investors, which would eventually be converted into equity share of the company giving the investors 5,00,10,000 of Equity shares representing 24.11% of the post issue equity outstanding.

    “For this, a total of Rs 35 crore will be invested through Warrants and shall be utilised for reducing debt and speed up development on existing projects,” the company said in a statement. The Board also took note of the fact that capital raise has become necessary to expand the permanent capital base as against the debt/working capital. “The company has plans to raise Rs 100 crores through various means and today's decision to issue warrants to non-promoters to raise Rs 35 crore is the first step in this direction. The decision strengthens the fact that the management continues to focus towards streamlining the operations and reduce the number of projects which are ongoing,” said Pranav Ansal, Vice Chairman and Whole Time Director of Ansal Properties and Infrastructure Limited.

    “We are committed to reducing the debt at a very fast pace as has been done in the past 12 to 18 months by settling debts with various lenders. Since the funds would be required immediately, therefore the capital raise of Rs 35 crore has been structured to ensure the inflow of funds in a short span of time,” he said. Company is exploring other options also to raise further capital to garner close to Rs 100 crore in the next few months. The board also commented that with the changing environment of doing real estate business, company needs to rely more on equity and permanent capital sources. Board also discussed the importance to reduce debt at a much faster pace and eventually become debt-free.

    “With Covid situation, there has been a sluggish response in the last 3 quarters in sales and collections and therefore capital raise would provide the necessary impetus to reduce debt of the company. Management has been working tirelessly towards completion of the existing projects and allocate necessary funds to fast track developments of projects which are in the last mile stage,” the company said in a statement. At this moment, the company does not seek new projects to be undertaken till the current projects are executed and completed.

    Ansal Properties & Infrastructure Limited is an integrated township developer with focus on mid-income housing space across various cities of Northern India (Haryana, Uttar Pradesh, Rajasthan & Punjab) wherein the Company acts as a master developer for its integrated township and Hi-Tech Township projects, starting from project conceptualization, planning, designing, construction and delivery. Till date, the company has developed and delivered an area of over 280 mn.sq.ft. across the real estate verticals including residential, commercial, retail, hospitality and integrated townships.


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