Centrum buy lifts Future Cap

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The shares of Future Capital Holdings gained over 14 per cent in falling markets after the board of directors approved the acquisition of 50.1 per cent stake in Centrum Direct and its subsidiary Centrum Wealth Managers for a total consideration of Rs 100 crore.

The stock appreciated 14.3 per cent last week from Rs 481.50 to Rs 551.15 against a 4.85 per cent fall in the Sensex. The Sensex has fallen by 765.69 points during the period from 15760.52 to 14,994.83.

Centrum Direct is engaged in the foreign exchange money changing business, while its subsidiary Centrum Wealth Managers is into retail broking including portfolio management services and distribution of financial and insurance products and services.

Future Capital Holdings is the financial services arm of the Future Group. The latter is a business group focussed on consumption-led businesses in the country and is also one of India's leading organised multi-format retailers.

The company has three primary lines of business; investment advisory services, retail financial services and research. The company raised Rs 491.34 crore in January this year by issuing 6.42 million equity shares through initial public offerings (IPO).

The public issue was aimed at raising capital for expanding Future Money, the company's retail financial services business.