Future Capital to issue Future cards
Over five lakh ICICI Big Bazaar credit card holders will be asked to migrate to Future Card to be introduced by Future Capital Holdings (FCH), the financial arm of the Kishore Biyani-led Future Group.
“The Future Card will also be issued to current holders of the ICICI Big Bazaar Card after obtaining written consent. We plan to migrate all holders of the card to Future Card,” according to the draft prospectus filed by Future Capital Holdings (FCH) for its upcoming initial public offering (IPO).
There are over five lakh ICICI Big Bazaar Card holders at the end of August 31, 2007, said the prospectus, which was filed by FCH to issue 64 lakh equity shares at a premium.
Although the price band for FCH equity would be determined later, the prospectus suggests that shares would be issued at a high premium as promoter Kishore Biyani and director Sameer Sain on September 27, 2007, were allotted 16.59 lakh and 14.78 lakh shares, respectively, at Rs 117.50 each. However, the average cost of acquiring shares works out to be Rs 57.25 per share for Biyani and Rs 28.64 per equity for Sain.
The prospectus also states that Future Group, which operates retail chain Big Bazaar, has over two dozen loss making subsidiaries in its stable.
These include Food-Mart Retail India, Future Knowledge Services, Pantaloon Industries, Futurebazaar India, Future Logistic Solutions, Future Media and Future Generali India Life Insurance among others.
