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Future Capital Holdings – Review

January 12, 2008

Future Capital Holdings Limited (FCH) is the financial services arm of the Future Group. Expansion of investment advisory and retail financial services business are the future revenue drivers for the company.

Future money, the brand name for retail financial services business is expected to benefit from synergies within the business group as in the area of retail financial services, FCHL has the exclusive right to provide financial products and services at present and future malls, stores and retail outlets in India which are owned, controlled or managed by PRIL and its subsidiaries. The funds raised will be used to shore up capital and expand future money business.

FCH acts as an advisor to investment managers of private equity and real estate (including hotels) funds with assets of US$975 million. We expect this segment of the business to benefit from the increasing number of private equity funds investing in the India growth story.

Looking at the Key Financials we feel the stock is highly overpriced. However, we strictly recommend our investors to apply if they are lucky enough to secure allotment in lottery [issue will be heavily oversubscribed] and SELL on listing.

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