QIP for north India expansion: Ansal Housing

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Yesterday Ansal Housing came in with its QIP plan. Kushagra Ansal, President at Ansal Housing and Constructions  informs that promoter equity dilution will be around 6% after the QIP issue. 

He says that the company will expand its presence in the NCR and Delhi market and acquire more lands in the Northern India region where it has a strong presence currently.

Ansal intends to use the QIP money to buy land in tier II cities in the states of Punjab, Haryana and Madhya Pradesh. According to him, the total land bank value stands at around Rs 900 crore.

Excerpts from CNBC-TV18's exclusive interview with Kushagra Ansal:

Q: You said 30 lakh shares but will the indicative pricing be around the current market price?

A: It will be as per SEBI's guidelines, which should be around the current market price.

Q: What do you intend of do with the money? Have you identified the areas where you going to purchase land banks?

A: With this money that we will raise, we will expand our presence in the NCR and Delhi market and acquire more lands in the Northern India region where we have a strong presence right now.

Q: Where in North India, aside from the NCR do you intend to expand your presence?

A: It will be in tier II cities in the states of Haryana, Punjab, and Madhya Pradesh.

Q: Along with the warrants you issued earlier and this QIP (Qualified Institutional Placement), how much equity dilution happens?

A: Promoter equity dilution will be around 6% and these 30 lakh shares will constitute 15% of the total increase share capital.

Q: What is the rough estimate of your total land bank right now and could you ascribe a market value to it as well?

A: We have 1,500 acre of land bank right now and one could put an average valuation of around Rs 60-65 lakh per acre on it.

Q: Would that workout to something close to between Rs 900-1,000 crore?

A: Yes, around Rs 900 crore.