Dalal Street

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.

Hindustan Zinc was down 5% to Rs 657.90, Sterlite Industries was down 5.5% to Rs 491 and Hindalco had shed 2.3% to Rs 178.80, in response to the fall in metal prices arising from fund-liquidation. Reports indicate that a hedge fund had suffered heavy losses.

Benchmark copper for delivery in three months closed at $5,330, down 4.8% from Thursday’s close of $5,600. In New York, copper futures closed at their cheapest levels in ten months. Rising LME copper stocks also dampened sentiment, with stocks up 127% over the last year. Copper is down more than 12% since the start of the year and around $3,000 below the peak hit in May 2006.

Zinc ended down at $3,085 versus $3,390 after falling 11.8% at one point, to $2,990 on Friday. Zinc prices have tumbled by more than 25% since the start of the year on worries about a looming surplus, China’s reporting net exports of zinc in 2006 and a slowing demand in Europe and the United States.

Aluminum fell a relatively modest 1.2%, to $2,720, on Friday.

Copper and zinc makers reported a strong financial performance in the December 2006 quarter on the back of firm prices of these metals on a year-on-year basis. Hindustan Zinc’s net profit rose 305.8% in the Dec-06 quarter to Rs 1335 crore, on 171.3% growth in net sales to Rs 2480 crore.

Hindalco’s net profit rose 91.5% in the Dec 2006 quarter to Rs 643.90 crore on 62.1% growth in net sales to Rs 4656.20 crore.