Mumbai: Future Ventures India Ltd, a unit of India’s diversified Future Group, said on Friday it had filed papers for an initial public offering of 3.74 billion shares, the issue price of which would be determined later.
This is a second share sale offer from the Future Group, which raised about $125 million through an IPO in its financial services firm Future Capital Holdings a few weeks ago.
The group owns India’s top listed retailer Pantaloon Retail India Ltd, whose board in 2007 approved investment of Rs3.5 billion in Future Ventures, set up to consolidate the group’s new projects and look at consumption-led businesses.
The IPO includes a net issue of 2.66 billion shares to the public, while 250 million shares are reserved for Pantaloon Retail’s shareholders, Future Ventures said in a statement.
The net issue would constitute 66.52% of the post-paid up capital of Future Ventures, it said.
Issue managers are JM Financial, Enam Securities, Kotak Mahindra Capital, ICICI Securities and Edelweiss Capital.
After Reliance Power’s $3 billion IPO, the world’s largest this year, hoisted India to overall top spot in January, new offerings were seen as losing their shine as a global credit crunch and US recession fears rocked stock markets.
But state-run lender Rural Electrification Corp’s IPO was subscribed more than 14 times by 0927 GMT on Friday, data from the National Stock Exchange showed. It closes later in the day.
Strong interest in the offer comes despite weak market sentiment prompted by concerns of overpriced public offers and a turbulent secondary market.
Earlier this month, three Indian firms withdrew their public offers, citing poor investor response, including a $1.6 billion offer by real estate developer Emmar MGF Land.