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Ansal Properties & Infra – Bonus Issue Likely

February 5, 2007

The stock of Ansal Properties was locked in upward circuit today due to a rumor of Bonus issue.

Recently, IL&FS Investment Managers (IIML), the private equity arm of IL&FS, signed an agreement to invest in two special purpose vehicles (SPVs) being floated by Ansal Properties and Infrastructure (APIL). DalalStreet.Biz could not confirm the quantum of investment, sources close to the deal said that IL&FS will have 49% equity in the SPVs with an investment of about Rs 130 crore.

The two SPVs that APIL plans to float in partnership with IL&FS, will develop projects in Gurgaon. While the first SPV is being floated for an integrated township, the second SPV will develop an IT special economic zone (SEZ). IL&FS is the second private equity fund to commit investments in an APIL SPV in the last six months. Earlier, HDFC Realty Fund had taken a 33% equity in an APIL SPV for developing an SEZ in Greater Noida.

In recent times, APIL has also attracted private equity investment in the holding company by diluting promoters’ stake. The company had raised Rs 175.8 crore through a 5% private placement with Citigroup in October last. Later, in November, George Soros had bought close to 1% equity in the company for Rs 25 crore through the secondary market.

APIL has reported a profit of Rs 40.19 crore for the quarter to December 2006, up by 256% from a profit of Rs 11.3 crore in the corresponding previous period. The company’s revenues has also jumped 194% to Rs 197.28 crore against a revenue of Rs 67.1 crore in the quarter to December 2005.

In the December quarter, the company signed a Memorandum of Understanding (MoU) with the Uttar Pradesh government for developing a hi-tech city on 2,504 acre adjoining Noida. The company also completed the qualified institutional placement issue to raise Rs 681.75 crore.

To cash in on the booming medical tourism business in India, Ansal Properties and Infrastructure (APIL) is reportedly said to have signed up with Fortis Healthcare for developing a 50-acre medicity project in Greater Noida. Apart from a 200-bed hospital, the project will also have an adjoining service apartments.

Ansal Properties & Infrastructure is engaged in real estate promotion, construction and development activities and executes contracts for building residential complexes, commercial complexes etc. It undertakes projects in India and abroad. The company later diversified into development of shopping malls and retail business by establishing a chain of departmental stores.

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