Biyani’s Future Ventures IPO…First you seduce at an obscene premium…and then now you seduce at Par !
Recent Past Pedigree Problem
So does FUTURE VENTURES really have a PROMISING FUTURE or is it just FUTURE PROMISES ?
Biyani’s ‘Future Ventures’…First you seduce Investors with a Future Capital Holdings IPO at an obscene premium…and now you seduce them at the other extreme with the Future Ventures IPO at near Par !
In January 2008,just before Reliance Power seduced Investors at an obscene premium,Biyani’s Future Capital Holdings (FCH) seduced Investors with an IPO at Rs 765 !…just over three years down the line it has collapsed 80% to Rs 160 thereabouts…legal…yet criminal !
Investors saved from FV IPO at a heavy Premium in 2008
And if Biyani had had his way he would have launched the IPO of even Future Ventures (FV) in 2008 in an attempt to gather Rs 2000 crs in it !…Rs 1500 crs would have been brought in by Promoters….probably monies from other Future Group Companies and in all probability from the IPO proceeds of FCH !……surely even the FV IPO would have been at an obscene premium too….after FCH IPO, an EGM was called in early March 2008 to raise the Authorised Capital of Futures Ventures to Rs 5000 crs ! to pave the way for the IPO
FV IPO Size now is for Rs 750 to Rs 825 crs in a bookbuilding range of Rs 10 to Rs 11…methinks this range is rather silly and senseless and it should have been a Fixed Price IPO
What will FV do ?
Biyani is resting on way past laurels with Pantaloon and Big Baazar
His own businesses are simply tight on cash and margins and lack of any fresh sustainable thrust in revenues and profits…SACH !….Oh ! that’s also the new brand of Products launched in 2008 in a venture with Sachin Tendulkar !
So now Biyani wants public monies in FV to invest in other businesses !…”trust my business and investment acumen” he seems to say…..however his own partner,with who he parted ways,Sameer Sain,ex Goldman Sachs raised questions on this….they both did not see eye to eye with each other on the business model to take the Future group forward
So should we trust Biyani and his FV ?
FV is a book building Issue of 75 crore shares of Face Value Rs 10 at par of Rs 10 to Rs 11…it has opened today…however there are no Anchor Investors….unlike last weeks full subscription in the Anchor Investor quota of 30% of the 50% QIB Portion of the heavily oversubscribed IPO of the other Systematically Important Non Deposit taking NBFC,Muthoot Finance Ltd