Thursday, July 19, 2012

Future Ventures Added by BNP Paribas



Kishore Biyani, Founder & MD, Future Ventures India Ltd.

By Ram NN, Assistant Editor:
01:47 AM IST, Thursday, 19th July 2012:

Future Ventures India Ltd (BSE: 533400, NSE: FUTUREVENT) counter in BSE on Wednesday witnessed a major buy of 6.90 crore shares by the FII, BNP Paribas Arbitrage.

The deal which saw BNP Paribas investing Rs. 65.55 crore, was disclosed at Bombay Stock Exchange after trading closed on Wednesday.

In another development for Future Ventures on Wednesday, its latest Share Holding Pattern for Q1 of the current fiscal was published by NSE, which reveals that BNP Paribas has significantly upped its stake in this Kishore Biyani led company.

StockExplain News had earlier reported on this FII’s first identified buy into this listed venture capital stock of Future Group, during early May, by which the leading French banking services firm had acquired 2.50 crore shares amounting to a 1.59% stake.

The SHP published on Wednesday reveals that the BNP arm had continued accumulating Future Ventures shares in Q1, post that first buy, to nearly triple its holding to reach a significant 4.55% stake by Q1 end.

The new buy by BNP Paribas Arbitrage on Wednesday, nearly doubles even this stake.

As of Q4 end, the French firm held no identifiable stake (upward of 1%) in this company that acts primarily as a holding firm for key Future Group operations like Pantaloon Retail (India) Ltd.

Wednesday’s buy alone amounts to a 4.38% stake, and if this FII hasn’t transacted in the stock since Q1 end, its total stake now stands at a huge 8.93%.

This expanded stake also makes BNP Paribas the largest non-promoter shareholder in Future Ventures India Ltd.

The latest SHP for Q1 published on Wednesday also reveals that the promoter group has upped its stake significantly during the quarter. The promoter’s stake is up by 2.73% to reach 37.32% of the total equity base.

StockExplain News had reported on one identified buy by promoters in mid June when they bought 0.64% additional stake.

Though the scrip had appreciated by 10% after both the buys, it has been largely range bound, with major sellers emerging at resistances.

On Wednesday also, there was a large offloading, probably induced by the stock hitting the immediate resistance on Wednesday.

Vedanta Resources’ group firm, The Madras Aluminium Company Ltd, sold off 5.79 crore shares on Wednesday at Rs. 9.50, which was also the buying price of BNP Paribas.

Further triggers for the stock will come from Q1 financial results, and positive developments, if any, from the extensive restructuring being undertaken in Future Group.

Future Ventures stock has been largely stagnant since its IPO more than one year back, with its small to nil profits being unable to service its large capital base. However, fortunes can turn around for the company if it successfully de-merges or lists its subsidiaries like fashion major Indus League Clothing which has many popular brands under it.

On Wednesday, Future Ventures closed trade in BSE at Rs. 8.83, down by 4.13%, in a general market whose key Sensex index was up by 0.47%.