Future Capital Holdings (FCHL), the financial services arm of the Future Group, 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 equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange. 

The book running lead managers to the issue are Kotak Mahindra Capital Company Limited, Enam Securities Private Limited, JM Financial Consultants Private Limited and UBS Securities India Private Limited.

Issue Snapshot

·          Offers 64.22 lakh shares

·          Price band : Rs 700-765

·          To raise Rs 449.5 to Rs 491 cr

Business

·          Is the financial services arm of the Future Group
Investment advisory services

·          Retail financial services

·          Research

·          Has over  USD 1.2 billion assets under advice/management

·          Provide private equity and real estate investment advisory services to onshore and offshore clients

·          Acts as the investment advisor to the Kshitij Fund (USD 89 M) focussed on developing retail malls in India

·          Acts as investment advisor Indivision Capital Mgt(USD 425 M)

·          Other funds advised Horizon Development Mgt(USD 350 M) real estate fund and FHL  Developments (USD 200 M) offshore hotel fund

Has exclusive right to provide financial products & services at present and future malls, stores and retail outlets in India, which are owned, controlled or managed by Pantaloon and its subsidiaries

Arrangement gives access to PRIL’s large customer base  (4.5 crore transactions during fiscal 2007)

PRIL has approximately 400 stores across 40 cities

Utilisation of fund

·          Plan to invest in infrastructure to add Future Money outlets independently of PRIL

·          Currently have 95 Future Money outlets located in 26 cities across India

·          have entered into agreement with ICICI Bank for the marketing & distribution of Future Card, a credit card and plan to launch this product shortly

·          Plans to offer in future, home equity loans and money transfer services, as well as distribute, life and general insurance products

·          In the process of finalising terms for acting as a corporate agent, for Future Generali India Insurance for general insurance products and, for Future Generali India Life Insurance for life insurance products

Results

H1FY08

Revenues: Rs 31.27 cr

Net loss: Rs 12.43 cr

Valuations
 

·          HSBC values the business at Rs 6000 cr…( Private equity funds at Rs 3100 cr, Consumer Finance Business at  Rs 2300 cr & distribution business at Rs 600 cr)

·          DSP ML values it at Rs 3550 cr