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Rediff.com  » Business » Ansal defers FPO, waits for market to stabilise

Ansal defers FPO, waits for market to stabilise

February 18, 2008 18:37 IST

Real estate firm Ansal Properties & Infrastructure is understood to have deferred its proposed follow-on-public offer to raise about Rs 1,000 crore (Rs 10 billion) by a few months due to volatile market conditions.

The company, which had last year said it was aiming for the FPO in early 2008, is believed to be waiting for the 'right time' for the launch and studying the possibility of raising $250-300 million from international private equity firm(s).

"There are plans for the FPO. But seeing the market condition, the company is waiting for the right time for the issue," sources said. It is waiting for merchant banker's decision on the timing of the issue.

But still, in view of completing Sebi formalities, it would take another 3-4 months, the sources added.

Meanwhile, the national-capital based company is believed to be looking for options to raise $250-300 million from international private equity firm(s), the sources said.

Last year, Ansal API Chairman Sushil Ansal had said the company would dilute promoter's holding to 55 per cent from the current 74 per cent through an FPO to raise about Rs 1,000 crore (Rs 10 billion) for funding its expansion plans and to meet the development cost of the ongoing projects.

The company had planned to issue fresh equity to raise the money. Ansal had also said, the company would raise around $250- 300 million from PE funds based in either the US or London for its hospitality ventures.

The company had earlier announced plans to develop about 30 hotels across the country and had floated a special purpose vehicle with Ambience Hospitality Management.

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