Indiantelevision.com Team

(3 January 2008 5:00 pm)

MUMBAI: Future Capital Holdings Limited (FCHL), the financial services arm of Future Group, has fixed the price band between Rs 700 to Rs 765 per equity share for its initial public offering (IPO).

FCHL's three primary lines of business are retail financial services, investment advisory services, and research.

The IPO of 6,422, 800 equity shares of Rs 10 each for cash at a price will be decided through a 100 per cent book-building process.

The company is expected to hit the capital market in mid-January and has already filed its red herring prospectus with the registrar of companies.

The issue would constitute 10.16 per cent of the post-issue paid-up capital of the company.

The equity shares are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE).

Pursuant to an agreement with Pantaloon Retail (India) Ltd (PRIL), FCHL 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. Future Money is its retail financial services offering.

Currently, the two main retail financial services products are consumption loans and personal loans. 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", a credit card offering loyalty points.

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.