Future Capital shares surge over 9%

Jun 04 2012, 16:57 IST
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SummaryShares of Future Capital Holdings today soared on reports Future Group is selling stake in the co.

Shares of Future Capital Holdings today soared over 9 per cent on reports Future Group is selling 53.67 per cent stake in the company to US-based private equity Warburg Pincus.

Shares of the company zoomed up by 9.45 per cent to Rs 149.95 on the BSE on reports of stake sale by Future Group.

Similarly, at the National Stock Exchange, shares gained 9.45 per cent to trade at Rs 149.90.

Future Group today announced that it is selling 53.67 per cent stake in Future Capital Holdings to US-based private equity Warburg Pincus to raise an estimated Rs 560 crore.

The counter saw profit-booking in afternoon trade with the shares paring some of the gains to trade at Rs 142.35, up 3.91 per cent at 1320 hrs on the BSE.

In terms of volume, 13.89 lakh shares were traded on the BSE, while over 37 lakh shares changed hands on the NSE.

As per the share purchase agreement, Warburg Pincus would inject another Rs 100 crore into Future Capital Holdings (FCH) and also make an open offer, under the takeover code of Sebi.

Kishore Biyani-led Future Group, whose core retail business formats include Big Bazaar, Food Bazaar, e-zone and Pantaloon, has a debt of over Rs 5,000 crore.

"As part of the transaction, Pantaloon Retail India and its wholly owned subsidiary Future Value Retail Ltd will sell its stake in FCH at a price of Rs 162 per share to Cloverdell Investment Ltd, an affiliate entity of Warburg Pincus," the Group said in a statement after signing of the agreement.

The share price of Rs 162 per share is at a premium of 14 per cent over the prevailing market price.

Surge in the stock sharply outperformed the bearish broader market, where the BSE benchmark Sensex was trading at 15,882.91, down 82.25 points at 1320 hrs.

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