Ansal takes QIP route to raise Rs 680cr
Ansal Properties and Infrastructure (APIL) is raising Rs 680 crore through the qualified institutional placement (QIP) route.
By Mayur Shekhar Jha & Rajat Guha, TNN |
NEW DELHI: Ansal Properties and Infrastructure (APIL) is raising Rs 680 crore through the qualified institutional placement (QIP) route. According to sources, the company will issue 67.5 lakh shares priced at Rs 1,010 per share. In the process, the company’s promoter Sushil Ansal will dilute close to 15% equity. APIL has already appointed DSP Merill Lynch as lead manager for the issue.
When contacted by ET, an APIL spokesperson declined to comment. However, sources said that the company will use proceeds from the QIP issue to part-finance expansion plans in the existing business as well as diversifying into some other businesses.
Entry into the hospitality business is top on the company’s priority, sources said. The company is also learnt to be evaluating options for listing on London Stock Exchange’s Alternative Investments Market (AIM) next year for raising close to $500 million.
The QIP issue is a part of APIL’s overall plans of raising around Rs 2500 crore. This plan was approved in the company’s EGM held on November 18, 2006. Recently, Citigroup had acquired a 5% stake in the company for an investment of Rs 175 crore. Another Rs 50 crore worth of investment had come from HDFC Realty Fund.
Several companies have opted to raise capital through QIP ever since Sebi came out with its guidelines for raising funds through this route earlier this year. Recently, FMCG major Marico had raised a QIP of Rs 150 crore. Bombay Rayon has also raised Rs 300 crore through this route. Deepak Ansal’s Ansal Housing has announced plans to raise funds via the QIP mode, though the exact value is not known.
Experts say that in the coming times, an increasing number of companies are likely to opt for the QIP route as the regulatory hiccups involved in the process are comparatively lesser than that in the issue of GDRs. “Its also less time consuming and a company can easily save 3-4 weeks,” an industry source pointed out. According to estimates by DSP Merill Lynch, in the next quarter itself, more than $500 million will be raised through QIPs.
When contacted by ET, an APIL spokesperson declined to comment. However, sources said that the company will use proceeds from the QIP issue to part-finance expansion plans in the existing business as well as diversifying into some other businesses.
Entry into the hospitality business is top on the company’s priority, sources said. The company is also learnt to be evaluating options for listing on London Stock Exchange’s Alternative Investments Market (AIM) next year for raising close to $500 million.
The QIP issue is a part of APIL’s overall plans of raising around Rs 2500 crore. This plan was approved in the company’s EGM held on November 18, 2006. Recently, Citigroup had acquired a 5% stake in the company for an investment of Rs 175 crore. Another Rs 50 crore worth of investment had come from HDFC Realty Fund.
Several companies have opted to raise capital through QIP ever since Sebi came out with its guidelines for raising funds through this route earlier this year. Recently, FMCG major Marico had raised a QIP of Rs 150 crore. Bombay Rayon has also raised Rs 300 crore through this route. Deepak Ansal’s Ansal Housing has announced plans to raise funds via the QIP mode, though the exact value is not known.
Experts say that in the coming times, an increasing number of companies are likely to opt for the QIP route as the regulatory hiccups involved in the process are comparatively lesser than that in the issue of GDRs. “Its also less time consuming and a company can easily save 3-4 weeks,” an industry source pointed out. According to estimates by DSP Merill Lynch, in the next quarter itself, more than $500 million will be raised through QIPs.
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