Ansal Properties and Infrastructure raises Rs 35 crore

NEW DELHI: Ansal Properties and Infrastructure (Ansal API) has raised Rs 35 crore by issue and allotment of 5,00,10,000 number warrants to non-promoter (Public) investors, which would eventually be converted into equity share of the company giving the investors 5,00,10,000 number of equity shares representing 24.11% of the post issue equity outstanding, the company said in a BSE filing.

Rakesh Omprakash Seth, Sanjeev Dewan, co-founder and MD of Dewan Group, Middle East & Americas, Jaju Akshat Dinesh, director in Dewan Group for business development, Odyssey Infrastructure and Tapioca Starch Industries have been offered up to 1,00,00,000 number of warrants while Gopika Nina Pillai, wife of late Rajan Pillai has been offered up to 10,000 number of warrants.

The issue of warrants is to get 25% amount immediately as a primary investment in the company while remaining investment of 75% will be invested within 45 days, the company said in a media release.

The fund raised will be utilised for reducing debt and speed up development on existing projects.

Pranav Ansal, vice chairman and whole time director of the company said, “The company has plans to raise of Rs 100 crore through various means and todays decision to issue warrants to non promoters to raise Rs 35 crore is the first step in this direction. We are committed to reduce 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. 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 took note of the fact that capital raise has become necessary to expand the permanent capital base as against the debt/working capital. It commented that with the changing environment of doing real estate business, company needs to rely more on equity and permanent capital sources.

At this moment, the company does not seek new projects to be undertaken till the current projects are executed and completed. Simultaneously, the company is also geared up to reduce the debt at a very fast pace to reduce the interest burden and save on cash flows to infuse into the projects, it said in the media release.