FUTURA POLYESTERS LIMITED - IDBI Capital

BASIS FOR ISSUE PRICE
The Issue Price has been determined in consultation with the Lead Manager to the Issue considering following
qualitative and quantitative factors. Investors should also refer to the section titled “Risk Factors” and
“Financial Statements” beginning on page viii and 111 respectively to get a more informed review before
making the investment division.
Qualitative factors
1 Experienced Promoters supported by qualified management team
2 In-house research and development facilities
3 Established marketing network
4 Diverse product mix
5 Focus on specialty segment
For more details, please refer to the chapter titled “Business Overview” beginning on page 31 and section titled
“Risk Factors” beginning on page viii of the Draft Letter of Offer respectively.
Quantitative factors
Information presented in this section is derived from our Company’s restated, financial statements prepared in
accordance with Indian GAAP.
Weighted average earnings per share (EPS)
Financial period EPS (Rs.) Weight
Financial year 2006 (1.89) 1
Financial year 2007 2.14 2
Financial year 2008 2.17 3
Weighted average 1.48
Notes:
1 The earnings per share has been computed on the basis of adjusted profits and losses for the respective
years / periods after considering the impact of accounting policy changes, prior period adjustments /
re-groupings pertaining to earlier years as per the auditors report.
2 The denominator considered for the purpose of calculating Earnings Per Share is the weighted
average number of Equity Shares outstanding during the year.
3 The face value of each equity share is Rs. 10.
Price/earning (P/E) ratio
1 Based on the financial year ended March 31, 2008, EPS is Rs. 2.17.
2 P/E based on EPS, for the year ended March 31, 2008 is 4.61.
3 Industry P/E*:
(a) Highest: 49.90
(b) Lowest: 3.70
(c) Average: 24.60
(*Source: Capital Market – Vol. XXIII/08 June 16 – June 29, 2008, Segment – Textile - Manmade)
Weighted average return on net worth*
Financial period Return on average net worth
Weight
(%)
Financial year 2006 (10.45) 1
24