Future Ventures to raise Rs750 crore from IPO

Future Ventures, a group company of the Kishore Biyani-led Future Group is planning to raise Rs750 crore ($170 million) through an IPO, that is about a fifth of the size it was targeting in its earlier attempt to go public three years ago. The firm would be valued at Rs1,576-1,657 crore (up to $375 million) post issue.

The company has a consolidated net worth of Rs738 crore as of 31December, 2010, with the value of investments pegged at Rs112 crore.

The nine-month period ended in December, 2010, saw the company gross a net income of Rs399 crore (primarily through retail sales of merchandise from its subsidiaries). The company suffered a net loss of Rs14.67 crore in the period.

Future Ventures would seek to create, build, acquire, invest in and operate businesses in 'consumption-led' sectors in the country. According to the company, the sectors are ones whose growth and development would be primarily determined by the growing purchasing power of Indian consumers and their changing tastes, lifestyle and spending habits.

The company would focus on opportunities in fashion, FMCG, food processing, home products, rural distribution and vocational education. It is also looking to exercise operational control or influence in the business ventures in which it invests.

According to Biyani, fashion business had matured significantly and most of the brands had become Ebitda (earnings before interest, tax, depreciation and amortisation) positive. He added that some of them were getting ready for IPO and over the next two years, the company could explore IPOs or merge and acquisition possibilities in some of them.