Sunday, April 24, 2011

FUTURE VENTURE IPO: AVOID

Mahesh Ji,
Please give your opinion on Future Group IPO
Rajeev Daniel
1. future venture limited is a kishor biyni group company and this is not a direct company of all big name like big bazar etc this is a venture company which means The objective of venture Company is to create, build, acquire, invest in and operate Business Ventures and venture companies intend to re-deploy any profits and cash flows from there Business Ventures in new business opportunities and do not intend to pay dividends on his Equity Shares , so i think mutual funds have less interest in this company due to no dividend flow.

2.future ventures India  limited was originally incorporated as Subhikshith Finance & Investments Limited on July 10, 1996 under the Companies Act, 1956. the name of  Company was subsequently changed to Subhikshith Finance & Investments Private Limited. The name of  Company was again changed to Future Ventures India Private Limited on August 9, 2007 and the word “private” was deleted on September 7, 2007 upon the Company ceasing to be a private limited company. my view is negative to see these type of past records
 3. Future Ventures India (FVIL) is an investment company (registered as an NBFC) and most of  penny shares traded in BSE  is NBFC. so this point create a fear to me for investing in this IPO ( it does not means that future venture ltd have a bad reputation this company have a good market reputation with good name and good management)
so do not be attract by lower price of this IPO as my past experience say  i am not very bullish in this IPO
 4.the company has reported net losses on a consolidated basis for each of the last three years, even as revenues rose from almost nothing to Rs 178 crore for 2009-10. 
5. book value of company is 9.87 so i think in secondary market this share fall below 10  when market rally is cool off.  
6.for download complete prospectus of this IPO from sebi site use this link
7.OVERALL MY VIEW IS STRICTLY AVOID THIS IPO

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