  L and M band observations of the nova-like variable V4332 Sgr are presented.
Two significant results are obtained viz. the unusual detection of water ice at
3.05 microns and the fundamental band of 12CO at 4.67 microns in emission. The
ice feature is a first detection in a nova-like variable while the CO emission
is rarely seen in novae. These results, when considered together with other
existing data, imply that V4332 Sgr could be a young object surrounded by a
circumstellar disc containing gas, dust and ice. The reason for a nova-like
outburst to occur in such a system is unclear. But since planets are believed
to form in such disks, it appears plausible that the enigmatic outburst of
V4332 Sgr could be due to a planetary infall. We also give a more reliable
estimate for an epoch of dust formation around V4332 Sgr which appears to have
taken place rather late in 1999 - nearly five years after its outburst.
