Future Group shares tank up to 20% as Reliance calls off deal

Shares of Kishore Biyani-led Future Group companies tanked up to 20 per cent on the BSE in Monday’s intra-day trade after Reliance Industries (RIL) called-off the deal to buy Future Retail as lenders to the retail company objected.

Future Supply Chain Solutions (down 20 per cent at Rs 37.30) and Future Lifestyle Fashions (down 20 per cent at Rs 29.40) hit their respective all-time lows in intra-day trade.

Future Market Networks too slipped 20 per cent to Rs 6.60 in intra-day, quoted close to its record low of Rs 6.28 hit on November 5, 2013. Future Consumer tanked 20 per cent to Rs 3.90 on the BSE. Future Retail (FRL) was locked in the 5 per cent lower circuit at Rs 27.80. The stock hit a record low of Rs 27.65 on March 23, 2022. In comparison, the S&P BSE Sensex was down 0.68 per cent at 56,808 as of 10:14 AM.

Also read: Future Group, Amazon set for long court battle as Reliance deal off

RIL said in a regulatory filing Future Group companies comprising FRL and other listed companies involved in the scheme have intimated the results of the voting on the scheme of arrangement by their shareholders and creditors at their respective meetings.

Majority shareholders and unsecured creditors of Future Retail, Future Lifestyle Fashions, and other group firms have voted in favour of the scheme of amalgamation with Reliance Retail, the company said on Friday.

However, a majority of the secured creditors of four out of the five Future companies (for which voting results are announced) voted against the resolution required to pass Future Group’s Rs 25,000-crore scheme to sell most of its retail and logistics businesses to Reliance Group.

Shareholders of the six listed Future Group companies voted on Wednesday. Bankers said all the large lenders had rejected the proposal.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor