The board of directors of Delhi-based developer Ansal API intends to raise Rs 203 crore for funding their ongoing projects.

The funds would be raised through the issue of 1 crore 26 lakh equity shares at Rs 70 each to a Mauritiusbased institutional investor IPRO and allotment of 1 crore 65 lakh warrants to the promoters and promoter group companies at the same price. The initiative will help the developer raise around Rs 203 crore.

The company's board had given its approval to the deal. The shareholders of the company will now decide upon the matter in the ensuing annual general meeting (AGM) to be held on September 29.

The firm also agreed to raise the limit for purchase of its equity shares and convertible debentures by foreign institutional investors up to 49 per cent of its total paid up capital. The deal with IPRO will result in raising Rs 88 crore.

"The raising of funds by the Mauritius-based IPRO indicates that foreign investors continue to have faith in the Indian real estate sector," said Pranav Ansal, vice-chairman and MD of Ansal API.