Future Capital IPO in band of Rs 700-765/shr

New Year blast for primary market

Future Capital Holdings (FCH), promoted by Kishore Biyani and its CEO Sameer Sain, has fixed a price band of Rs 700-765 for its initial public issue (IPO) to be launched in mid-January. The IPO is expected to mop up nearly Rs 490 crore and may become the first primary offering of 2008.

The subscription for the issue will open on January 11 and close on January 16. The company will offer 10.16 per cent of its equity, or 6.42 million equity shares of Rs 10 each at a price to be decided through the book-building process. It plans to use the IPO proceeds for expanding its consumer finance outlets named Future Money.

FCH had filed the red herring prospectus with Securities and Exchange Board of India in late September and received the regulator's nod recently. Kotak, Enam, J M Financial and UBS are the book running lead managers to the issue.

Pantaloon, Biyani and Sain hold nearly 83 per cent in the company. George Soros' Quantum Fund holds 10 per cent, which it bought from hedge fund Och Ziff.

The remaining stake is held by the co-promoter Sameer Sain and other senior employees such as Atul Kapur and Shishir Baijal

After the issue, the promoters' holding will come down to 74.5 per cent, from 83 per cent currently. Pantaloon Retail's 61 per cent holding in Future Capital will come down to 55 per cent.