Ansal Properties to invest Rs 46 crore to speed up the completion of projects

Out of the total Investment of approximately Rs 46 crore, approximately Rs 14.79 crore will be invested by ICP Investments (Mauritius) Limited, a Foreign Venture Capital Investors, against allotment of 87,00,000 warrants and balance will be invested by Promoter Group Entity.

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Ansal Properties and Infrastructure Limited will invest Rs 46 crore through warrants, which will be utilized for reducing debt and speed up the development on existing projects.

During the board meeting of the company on February 11, the members consider the issue and allotment of Warrants to Promoter Group entity and Non-Promoter entity(Public) investors.

“The Board of Directors has considered and approved the issue and allotment of 2,70,00,000 Warrants to Promoter Group entity and Non Promoter (Public) investors, which would eventually be converted into Equity share of the Company giving the investors 2,70,00,000 of equity shares representing 14.64% of the post issue equity outstanding,” the company said in a statement.

Out of the total Investment of approximately Rs 46 crore, approximately Rs 14.79 crore will be invested by ICP Investments (Mauritius) Limited, a Foreign Venture Capital Investors, against allotment of 87,00,000 warrants and balance will be invested by Promoter Group Entity.

“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 board also commented that with thechanging 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,” the company said.

The company has focussed on reducing debt in the past 12 to 18 months by settling debts with various lenders.

“The company may raise further capital through various means depending upon the requirement. 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 Anoop Sethi, Whole Time Director and CEO 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 18months by settling debts with various lenders and with such committed efforts, the Company has successfully reduced the consolidated debt by approximately over Rs 500 Crore in past couple of years and will endeavor our efforts to lower the’ debt further bottom ward,” Sethi added.

The Company will continue to focus on execution of the projects and completing the existing projects, There is focus to complete and deliver real estate products in the best possible timelines.

At this moment, the company does not seek new projects to be undertaken til 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.