Future Ventures loses at Rs 36 cr

Future Ventures has reported a consolidated net loss of Rs 36.41 crores for the quarter ended

June 30, 2011. Interestingly, the Kishore Biyani-owned company had a net loss of Rs 3.47 crores in the corresponding quarter last fiscal. During the reporting quarter, the firm’s consolidated total income increased by 89 per cent to Rs 156.32 crores from Rs 82.73 crores in the year-ago period. The net loss was mainly on account of IPO expenses incurred by the company during the period.

In April this year, the company had entered the capital market with a price band of Rs 10 to Rs 11 per share for the public issue of Rs 750 crores. The low-priced IPO came as a whiff of fresh air. The IPO aimed to bring down promoters’ stake to somewhere between 52.5 per cent and 55 per cent. Expenses aggregating to Rs 32.31 crores incurred during the quarter have been absorbed in the profit and loss account. Future Ventures is classified as a non deposit taking non-banking finance company, but for all practical purposes operates in the space of fashion and food brands. It is a sort of a venture capital, which mainly invests in equity capital of emerging businesses in consumption-led sectors.