Future Ventures IPO likely in Feb-March 2011

Future Ventures IPO likely in Feb-March 2011

Mumbai: A unit of Future Group, which runs the country’s top listed retailer Pantaloon Retail, is likely to hit the capital market by February or March 2011, a company official, who did not wish to be identified, said on Thursday.

Future Ventures is looking to raise as much as Rs750 crore through the IPO, and intends to use the proceeds to build, invest in or acquire businesses in India’s growing “consumption-led" sectors.

The unit filed its draft prospectus in August.

Future Group 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.

E-commerce venture

Future Group, which also owns financial services firm Future Capital Holdings, expects to clock Rs100 crore revenue from its e-commerce venture in 18 to 24 months, Kishore Biyani, the group chief executive officer, said.

The company expects gross margins of 10-12% from its e-commerce venture futurebazaar.com, Biyani said.

“The idea is to sell goods at a much lower cost on this platform than we can sell through our physical stores," he added.

Future Bazaar is the online retail venture of the Future Group and sells products from its group companies.

Future Group, which also runs the Big Bazaar and Food Bazaar chains, has invested 1.65 billion in Future Bazaar, Biyani said.

The firm expects the e-commerce venture to provide 8 to 10 percent of its total retail revenue in four to five years.

Shares of Pantaloon Retail were trading down 1.19% at Rs480, while those of Future Capital Holdings were down 1.74% at Rs256.8 at 2.22 pm in a choppy Mumbai market.