Future Venture IPO has been aggressively priced.Total Networth of the co is less then Rs 575 crore But IPO size is Rs 750 crore for just part of the cos equity.
But lets hope that we get some listing gain.
In 2008, Future Capital raised Rs 450 crore through initial share sales selling at Rs 765 per share. Three years later, the shares are trading at less than a fourth of their value at 170.
Future was one of the few smart groups which raised money at the peak of the bull run in 2007-2008. The Sensex had touched its all time high of 21,078, a day before Future Capital IPO hit the market. The shares were sold at a huge premium of 76 times the face value. The issue was allotted at the upper end of the price band of Rs 700-765 and raised Rs 490 crore. This valued the company at Rs 4,900 crore. Though Biyani got peak valuations, he has had to face investor criticism for the subsequent destruction of shareholder value. Some investors even took it up with the management in the annual general meeting in 2009. The stock had plunged to an all-time low of Rs 93 by March 2009.
Satyakam Mishra
But lets hope that we get some listing gain.
In 2008, Future Capital raised Rs 450 crore through initial share sales selling at Rs 765 per share. Three years later, the shares are trading at less than a fourth of their value at 170.
Future was one of the few smart groups which raised money at the peak of the bull run in 2007-2008. The Sensex had touched its all time high of 21,078, a day before Future Capital IPO hit the market. The shares were sold at a huge premium of 76 times the face value. The issue was allotted at the upper end of the price band of Rs 700-765 and raised Rs 490 crore. This valued the company at Rs 4,900 crore. Though Biyani got peak valuations, he has had to face investor criticism for the subsequent destruction of shareholder value. Some investors even took it up with the management in the annual general meeting in 2009. The stock had plunged to an all-time low of Rs 93 by March 2009.
Satyakam Mishra
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