IPO of Future Ventures likely to open by April end

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IPO of Future Ventures likely to open by April end
The company, Future Ventures, earlier in 2008 had also filed documents with SEBI to bring out its IPO to raise approximately Rs 3,700 crore prior to financial crisis. But the adverse market conditions forced the company to withdraw the IPO plan.

The second draft red herring prospectus (DRHP), the document filed sharing its reason to raise the money, has some changes from earlier one. The first DRHP said the company wanted to invest in consumption-led sectors. The second one has narrowed its focus to FMCG, fashion, food processing, home products, rural distribution and education.

Future Ventures currently has 13 companies in its portfolio which own brands in fashion, FMCG, food processing and home products.

According to K K Rathi, CEO, Future Ventures, the major part of the fund what the company is raising will be used in acquiring new businesses, and a small part will be used in growing existing businesses.

Kishore Biyani"s Future Group is holding 60% stake in the company, while media house Bennett Coleman, owner of the Times of India newspaper, holds 10%. Rest of the stake is held by individual investors.

The consolidated losses of the company had decreased to Rs 21.34 crore in 2009-10 from Rs 55.60 crore in 2008-09. The company"s total income had increased by 36 per cent to Rs 177.91 crore in 2009-10 from Rs 130.64 crore in 2008-09.Future ventures is planning to hit the capital market with its initial public offer (IPO) in the last week of April 2011. The company is planning to raise Rs. 750 crore from IPO. The company earlier in 2008 had also filed documents with SEBI for the IPO to raise approx Rs 3,700 crore prior to financial crisis. But the adverse market conditions forced the company to withdraw the IPO plan. The second DRHP has some changes from earlier one; the first DRHP said the company wanted to invest in consumption-led sectors. The second one has narrowed its focus to FMCG, fashion, food processing, home products, rural distribution and education. According to K K Rathi, CEO, Future Ventures, the major part of the fund what the company is raising will be used in acquiring new businesses, and a small part will be used in growing exixting businesses.

Kishore Biyani"s Future Group is holding 60% stake in the company, while media house Bennett Coleman holds 10 per cent. Rest of the stake is held by individual investors. The consolidated losses of the company had decreased to Rs 21.34 crore in 2009-10 from Rs 55.60 crore in 2008-09. The company"s total income had increased by 36 per cent to Rs 177.91 crore in 2009-10 from Rs 130.64 crore in 2008-09.

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