'Avoid' Future Ventures India IPO: Way2Wealth

MUMBAI: Way2Wealth has recommended investors to ‘Avoid’ initial public offering of Future Ventures.

“At the offer price band, the issue is available at P/BV of 1.06-1.16 on fully diluted equity capital. Though the issue price very well justifies the earnings profile of the business ventures, it may be noted that it might take a while for FVIL to benefit fully from an acquisition.

An investor looking forward for an exposure to the consumption-led theme can instead invest in Pantaloon Retail India which has proven business model and better operational performance rather than investing in a sort of holding company with focus on such a theme, which currently seems to be a high risk proposition. We thus recommend an Avoid for the issue,” the report said.

The company has entered the capital market to raise Rs 750-825 crores by issuing shares of face value Rs 10 each in the price-band of Rs 10-11 per share.

The proceeds will be used to create, build, invest in or acquire, and operate business ventures.

The issue closes Thursday.