US-based private equity firm Warburg Pincus is likely to pick up a majority stake in financial services firm Future Capital Holdings for an estimated Rs 600 crore.
“The board of Future Capital will meet tomorrow to decide on the valuation for divestment of the entire promoter stake of 56.30 per cent stake to Warburg Pincus,” sources said. Warburg Pincus would offer Rs 155-165 a share, valuing the stake at Rs 600 crore, they added.
The price of Rs 165 a share is at a premium of 20 per cent over Friday's closing of Future Capital Holdings. The scrip had closed at Rs 138 on the Bombay Stock Exchange.
Currently Pantaloon Retail is the promoter group firm and holds 56.30 per cent stake in Future Capital Holdings. The remaining is with the public. Pantaloon Retail is deleveraging its balance sheet by selling stake, sources said, adding
V Vaidyanathan would continue as the chairman and managing director.
For the financial eyar ended March 31, Future Capital Holdings reported a net profit of Rs 105.8 crore, a jump of 115 per cent from Rs 49.1 crore in the year ago period. Its asset base stands at Rs 4,700 crore.
The company, which provides consumer and mortgage loans, has improved its asset quality during the fiscal with the gross non-performing asset ratio dropping to 0.08 per cent from the year ago's 0.25 per cent. Warburg Pincus manages assets worth about $40 billion globally and has also invested in Indian companies across sectors.
