Future Capital IPO: First to hit the market in 2008; opens on January 11

Future Capital Holdings Limited (FCHL), the financial services arm of the Future Group, is likely to be the first company to hit the capital market in 2008 to raise Rs 490 crore.

The company has fixed the Price Band between Rs 700 and Rs 765 per equity share for its Initial Public Offering ("IPO") of 6,422,800 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The issue will open on January 11 and close on January 16.

FCHL is currently into investment advisory services, retail financial services and research. The company was incorporated in 2005 and promoted by Pantaloon Retail India Ltd (PRIL), the flagship company of the Future Group. One of the investors in the company is Och-Ziff, a prominent international fund.

The shares offered in the IPO will constitute about 10% of Future Capital's post-issue capital and the promoters' holding would fall to 74.5% from 83%.

In June 2007, FCHL launched its retail financial services offering “Future Money”, with the objective of becoming one of the leading retailers of financial products and services in India.

Currently, it has 95 Future Money outlets located in 26 cities across India, most of which are located within the retail stores of PRIL and its subsidiaries.  

Sameer Sain, CEO and Managing Director of the company said, "We want to become a leading financial services provider in the country. We will look at all the opportunities to achieve that aim."

The Equity Shares are proposed to be listed on Bombay Stock Exchange Ltd. ("BSE") and National Stock Exchange of India Ltd. ("NSE").  

The Lead Managers to the Issue are Kotak Mahindra Capital Company Limited, Enam Securities Private Limited, UBS Securities India Private Limited and JM Financial Consultants Private Limited.

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