Future Group unit to raise $160 mn in IPO

Future Group unit to raise $160 mn in IPO

Mumbai: An unit of India’s Future Group, which runs the country’s top listed retailer Pantaloon Retail, is looking to raise as much as Rs7.5 billion ($160 million) through an IPO, according to a draft prospectus.

Future Ventures, the investment arm of Future Group, plans to use the proceeds of the offering to build, invest in or acquire businesses in India’s growing “consumption-led" sectors, said the prospectus posted on the issue managers’ websites. Enam Securities, JM Financial and Kotak Mahindra Capital are book running lead managers for the offering.

The timeline for the IPO has not yet been set.

Future group, which also owns financial services firm Future Capital Holdings, had intended to float Future Ventures in 2008, but the process was delayed in the wake of the financial crisis, an economic slowdown and a stock market collapse.

Indian firms have raised a total of about $14 billion through share sales so far this year from 74 issues, compared with $16 billion raised in 2009 from 89 offerings, according to Thomson Reuters Data.

A strong market debut for Indian lender SKS Microfinance, which counts US billionaire George Soros as one of its investors, on Monday boosted prospects of more such offers in the world’s largest market for small loans.