New Delhi: Over five lakh ICICI Big Bazaar Credit Card holders will be asked to migrate to Future Card to be introduced by the Future Capital Holdings (FCH), a financial arm of the Kishore Biyani-led Future Group.
“The Future Card will be issued to the current holders of the ICICI Big Bazaar Card after obtaining written consent. We plan to migrate all holders of this card to Future Card,” said the draft prospectus filed by the Future Capital Holdings (FCH) for its upcoming initial public offer (IPO).
There were over five lakh ICICI Big Bazaar Card holders at the end of 31 August, 2007, said the prospectus, which was filed by FCH to issue 64 lakh equity shares at a premium.
Although the price band for FCH equity would be determined later, the prospectus suggests that shares would be issued at a high premium as promoter Kishore Biyani and director Sameer Sain on 27 September, 2007, were allotted 16.59 lakh and 14.78 lakh shares, respectively, at Rs117.50 each.
However, the average cost of acquiring shares works out to be Rs57.25 per equity for Biyani and Rs28.64 per equity for Sain.
The prospectus also states that Future Group, which operates retail chain Big Bazaar, has over two dozen loss making subsidiaries in its stable. These include Food-Mart Retail India, Future Knowledge Services, Pantaloon Industries, Futurebazaar India, Future Logistic Solutions, Future Media and Future Generali India Life Insurance among others.
As regards the new card, the Future Group has already signed an agreement with the ICICI Bank to launch the co- branded Future Card under which the bank would be responsible for collection and recovery of all charges and dues from customers.
Under the agreement, FCH will receive Rs600 for every card issued in addition to commission of 0.7% on sale within the Future Group and 0.2% in other outlets.
The Future Group, as per the agreement, will be responsible for marketing and distribution of the credit card and collecting application forms for customers.