Future Ventures files draft prospectus for Rs 750 cr IPO

In its second attempt to tap the capital markets, Kishore Biyani-promoted Future Ventures India Ltd has filed a draft prospectus with market regulator Sebi for Rs 750 crore initial share sale offer.

As per the information available with Securities and Exchange Board of India (SEBI), the company may consider participation by anchor investors.

Besides, the Future Group entity may consider closing the issue period for institutional buyers one day prior to the bid closing date, it said in Draft Red Herring Prospectus (DRHP).

This model (entire one day for retail and high net worth individuals) has helped several companies recently to attract more participation from the non-institutional investors.

This model was followed in the recently-concluded public offers of SKS Microfinance, Bajaj Corp and state-run Engineers India Ltd, where a huge response was seen from retail and high networth individual categories.

This is the second time that Future Ventures is planning to tap the primary market. Earlier, in the year 2008, the company had filed a prospectus, but did not come out with an offer.

Two firms of the Future Group -- Future Capital Holdings and Pantaloon Retail Pantaloon Retail -- are already listed on the stock exchanges and this will be the third one from the group to tap the capital market.

According to the prospectus, media major Bennett Coleman and Company Ltd (BCCL) is among the top 10 shareholders of the company.

BCCL, the publisher of English dailies Times of India and Economic Times, holds a 12.10 per cent stake in the company.

Other top shareholders of the company include Pantaloon Retail (India) Ltd, which holds an 18.15 per cent stake, and Future Capital Investment, with a 12.32 per cent holding.

The company plans to raise funds to create, build, invest in or to acquire and operate business ventures, and  for general corporate purposes, as per the DRHP.

JM Financial, Enam Securities and Kotak Mahindra Capital are the book running lead managers to the issue.

Shares offered through the initial public offer (IPO) are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange.

The company is a part of the Future Group. The Future Group is promoted by Biyani and focuses on consumption-led businesses.