Future Capital Holdings Limited (“FCHL” or the “Company”), the financial services arm of the Future Group, has fixed the Issue Price at Rs 765 per equity share (upper end of the Price Band) for its Initial Public Offering (“IPO”) of 6,422,800 equity shares of Rs 10 each for cash (“Equity Shares”) at the above price decided through a 100% book-building process.

The Bid/Issue opened for subscription on January 11, 2008, and closed on January 16, 2008. According to the preliminary data obtained from the stock exchanges, the Issue was subscribed to approximately around 133 times (Source: NSE website). The Qualified Institutional Bidders (“QIBs”) portion was subscribed to approximately around 180 times; the Non Institutional Investors portion was subscribed to approximately around 84 times; and the Retail portion was subscribed to approximately around 55 times. The Public Issue received more than 11.71 lakh applications and bids for 85.7 crore equity shares as against 6.42 million shares on offer.

The Equity Shares are proposed to be listed on Bombay Stock Exchange Ltd. (“BSE”) and The National Stock Exchange of India Ltd. (“NSE”). The Issue constitutes 10.16% of the post-issue paid-up capital of the Company.

FCHL was incorporated in 2005 and promoted by Pantaloon Retail (India) Ltd. (the flagship company of the Future Group), its Managing Director Mr. Kishore Biyani, and Mr. Sameer Sain (a former Managing Director at Goldman Sachs International). One of the investors in the Company is Och-Ziff, a prominent international fund. Its three primary lines of business are investment advisory services, retail financial services and research.

As part of the investment advisory services, the Company provides private equity and real estate investment advisory services to onshore and offshore clients. These investment advisory services include investment analysis, research and recommendations. It acts as the investment advisor to the Rs 350 crore (approximately US$89 million) Kshitij Venture Capital Fund (the “Kshitij Fund”), an onshore SEBI-registered venture capital fund, whose main focus is developing retail malls in India. It also acts as the investment advisor to three offshore investment managers namely: Indivision Capital Management, the offshore investment manager of the US$425 million (approximately Rs 1,671 crore) offshore private equity fund, Indivision India Partners; Horizon Development Management, the offshore investment manager of the US$ 350 million (approximately Rs 1,376 crore) offshore real estate fund, Horizon Realty Fund, LLC; and FHL Developments Company LLC, the offshore investment manager of the US$200 million (approximately Rs 786 crore) offshore hotel fund, Indus Hotel Ventures LLC.

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. Pursuant to an agreement with PRIL, it has the exclusive right to provide financial products and services at present and future malls, stores and retail outlets in India which are owned, controlled or managed by PRIL and its subsidiaries. Presently, 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. Currently, the two main retail financial services products are consumption loans, which are loans to finance the purchase of durables, furniture and other consumer goods, and personal loans, which are unsecured credit lines to individual customers.

FCHL will also commence in the near future the distribution of financial products, including credit cards. It has entered into an agreement with ICICI Bank for marketing and distribution of the “Future Card”, which will be a credit card offering loyalty points to customers. It is also in the process of finalising detailed terms for acting as a corporate agent, for Future Generali India Insurance Company Limited for general insurance products and, for Future Generali India Life Insurance Company Limited for life insurance products. Future Capital Research, the research business, conducts and publishes economic research on India with the objective of enhancing value creation across the other businesses.

The Book Running Lead Managers (“BRLMs”) to the Issue are Kotak Mahindra Capital Company Limited, Enam Securities Private Limited, JM Financial Consultants Private Limited and UBS Securities India Private Limited.

Sourced From: Adfactors Public Relations Pvt Ltd

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