Yet another group company of the country’s largest retailing group has filed for a public float of shares. Future Ventures India Pvt Ltd that promotes various ‘business ventures’ and is a non-deposit taking NBFC has filed for its IPO to raise Rs 750 crore.
The firm is backed by ad-for-equity investor Bennett Coleman & Co Ltd, that is incidentally also an early investor in Pantaloon Retail. BCCL holds 12% stake in Future Ventures with an estimated investment of around Rs 100 crore.
The company, which earlier filed a draft prospectus to raise Rs 3,700 crore over two years ago, had decided not to go ahead with the IPO as the stock markets crashed. At that time, it was coming out with one of the rare issues that was priced at par with its face value.
The company has not stated the pricing structure for the issue yet. If the promoters are planning to retain majority stake then they would need to issue around 160 million shares translating into a price of around Rs 50 per share. At this price, the company would be valued around Rs 5,000 crore or a little over $1 billion.
This for a company that clocked consolidated total income of Rs 177.9 crore of which two-thirds came through merchandise sales and the rest from a mix of other income and proportionate share of joint ventures income for the year ended March’10. It had net loss after share of associates and minority interest pegged at Rs 10.68 crore for FY’10.
However, the company had early this month issued shares to promoter group--Pantaloon Retail(India) Ltd at face value. If the IPO comes at Rs 10 a share as it was supposed to over two years back and as per latest share issue, the company will issue 750 million shares that would value the company at Rs 1,576 crore.
As per the draft, Future Ventures seeks to create, build, acquire, invest in and operate innovative and emerging businesses in growing "consumption-led" sectors in India focusing on fashion, FMCG, food processing, home products, rural distribution and vocational education. This would make it a venture capital firm with significant operational control over business ventures that it may look to spin out as they mature.
It has, at present, 13 Business Ventures around half of which are its subsidiaries. In the fashion category, its portfolio includes women’s apparel business under Biba Apparels Private Limited besides Holii Accessories Private Limited, a joint venture with Hidesign India Private Limited which is a manufacturer and retailer of fashion accessories such as leather handbags and wallets.
It also has exposure in Indus-League Clothing Limited, a designer, manufacturer and retailer of ready-made garments under various brands, such as Indigo Nation, John Miller, Scullers and Urban Yoga besides Celio Future Fashions Limited, a joint venture with a global brand of men’s apparel and accessories based in France, Lee Cooper (India) Private Limited, a manufacturer and retailer of Lee Cooper-branded products and Turtle Limited, manufacturer, distributor, exporter and retailer of men’s wear products.
Among others it has presence in home products segment through Indus Tree Crafts Private Limited, a social entrepreneurship which distributes hand crafted furniture and home accessories under the brand Mother Earth. In food processing it has exposure to Capital Foods Exports Private Limited, that is into products such as instant noodles, sauces, chutneys and microwavable rice and curries under various brands, including "Ching’s Secret" and "Smith & Jones".
It also has exposure to FMCG through Future Consumer Enterprises Limited that is into product development, designing, branding and distribution of brands such as "Tasty Treat" and "Sach" besides rural distribution under Aadhaar Retailing Limited and SSIPL Retail Limited, a retailer of Nike branded products, wholesaler of footwear, sportswear and apparel, and a manufacturer and distributor of footwear.