Wednesday, January 9, 2008

Future Cap Likely To Enter Asset Management, Retail Broking

Future Capital Holdings (FCH), the financial services arm of Kishore Biyani''s Future Group, is likely to get into asset management and retail broking. FCH is currently into investment advisory, retail financial services and research. FCH will issue 6.42 million shares at a price band of Rs 700-765 to raise nearly Rs 490 crore. The IPO will close on 16 January 2008.

FCH''s proposed foray into asset management and retail broking follows similar plans by others including Edelweiss Capital, Bharti-AXA, Ambit-Nikko, UBS and Dawnay Day. There are 33 mutual funds which manage Rs 5.5 lakh crore worth assets under management. FCH, however, will not look at any acquisitions as it prefers to build its businesses from scratch. Fund houses see big potential in the retail financial services space, as Indian households invest a mere 4-5 percent of their savings in equity, or equity-linked products compared to 20 per cent in developed markets.

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