Future Capital IPO subscribes 132.10 times

Future Capital Holdings (FCH), a financial services arm of the Future Group, received overwhelming response from investors for its initial public offering, which subscribed 132.10 times on closing day till 7.00 p.m. The issue received 848.45 million bids as against issue size of 6.42 million shares. The price band has been fixed between Rs 700 to Rs 765 a share. The issue which opened on January 11, close today, January 16.

FCH plans to utilize the capital raised through this issue primarily for the expansion of the Future Money offering, in particular, the growth of its loan portfolio. This will likely to fuel the growth of the company over next few years.

The issue has been graded by Care with an IPO Grade 3, indicating average fundamentals, to the proposed IPO of FCL. The issue would constitute 10.16% of the post issue paid-up capital of the company. The equity shares of the company, offered through this IPO, are proposed to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Kotak Mahindra Capital, ENAM Securities and JM Financial Consultants are helping to raise maximum of Rs 4,913.44 million via this public issue.

FCH is the financial services arm of the Future Group, which is a business group focusing on consumption-led businesses in India and which is also one of India`s leading organized multi-format retailers. FCH was incorporated in 2005 and is promoted by Pantaloon Retail (India) (PRIL), the flagship company of the Future Group. One of the investors in the company is Och-Ziff, a prominent international fund.