Saturday, December 29, 2007

Biyani Gets SEBI Nod For Future Capital IPO

MUMBAI: Kishore Biyani-promoted Future Capital Holdings has received the regulatory go-ahead from SEBI for its initial public offer, estimated to raise between Rs 400-500 crore.

Market regulator SEBI has issued its observations on the draft prospectus for the IPO of Future Capital, the non-banking financial business arm of Future group, clearing the way for the issue early in 2008, sources close to the development said on Friday.

In its draft red herring prospectus filed with the SEBI in September, Future Capital had offered to issue 64.22 lakh equity shares of Rs 10 face value at a price to be decided through the book-building process.

The company has proposed to list the shares on the NSE and BSE. The shares offered in the IPO would constitute about 10 per cent of the company's post-issue capital.

Kotak Mahindra Capital, Enam Securities, JM Financial and UBS Securities have been appointed as the book-running lead managers to the issue.

After the issue, the promoters' holding would decline to about 74.5 per cent, from 83 per cent currently. Pantaloon Retail's about 61 per cent holding in Future Capital will come down to 55 per cent, while the stake held by Biyani and CEO Sameer Sain would decline from 6.6 per cent to 6 per cent and from 15 per cent to 13.5 per cent respectively.

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