India Infoline has come out with report on Future Capital Holdings IPO. It has recommended investor to subscribe the issue for listing gains as well as for long term.

Future Capital Holdings (FCHL), the financial services arm of the Future Group, will open on January 11 with its initial public offering (IPO) of 6,422,800 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The issue will close on January 16, 2008. It has fixed the price band between Rs 700 and Rs 765 per equity share.

India Infoline report on Future Capital Holdings IPO

Future Capital Holdings (FCHL) is the financial services arm of the Future Group that focuses on consumption-led businesses in India. It was established in the year 2005 and is promoted by Pantaloon
Retail India (PRIL) (the flagship company of the Future Group), Mr Kishore Biyani (CEO and MD of PRIL) and Mr Sameer Sain (a former MD of Goldman Sachs International).

Its three primary lines of business are investment advisory and asset management, retail financial services and research. Ozh-Ziff, an international hedge fund, has invested over USD 28 billion in the company.

Investment summary

• Well-known and established brand in retail.
• Advisory to private equity player.
• Extensive research on macro economy.
• Unique and differentiated business model.

Risks and concerns

• Posted a net loss of Rs 124 million in H1FY08.
• Any downturn in Indian retail and consumption-led sectors would affect their business profitability.

FCHL set to tap opportunities in Indian Retail consumption-led sectors

FCHL, with its expertise in retail sector, offers advisory service and manages the assets of private equity players and real estate funds. With the current shift in the consumption pattern of Indians towards organised retail, FCHL is set to seize the opportunities of the growing demand of consumer and personal loans at the nascent stage. Hence we recommend investor to subscribe in the issue.