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Wednesday, May 18, 2022

Future Retail stocks cannot shake off the shock from the deal with Reliance falling through

  • Future Retail’s share price fell another 10% on August 9.
  • The share price had fallen about 16% on Friday, after the deal with Reliance fell through.
  • CEO Kishore Biyani had previously said that the deal with Reliance Retail was a “saviour” for the company.

Share prices of Kishore Biyani-led Future Retail have taken a nosedive after the ₹24,713 crore deal with Reliance Retail fell through on Friday, August 6.

Future Retail’s share price fell 10% onAugust 9, as of 10:15 a.m. On Friday, the stock had tanked 16% as the Supreme court passed its verdict in favour of Amazon.

Future Group firms Stock movement on August 9, at 10:22 a.m.
Future Retail -9.9%
Future Consumer -8.28%
Future Lifestyle Fashion -9.96%
Future Enterprises -9.73%
Future Supply Chain Solutions -9.98%

The legal battle between Amazon and Future Retail dates back to August 2020, after Mukesh Ambani-led Reliance Retail agreed to buy Future Group’s retail, wholesale and warehousing assets.

Amazon, which held about 3% stake in Future Retail through its 49% shareholding in Future Coupon, objected to the deal. The company highlighted that as per their investor clause, Future Group was barred from selling any of its assets to specific companies, including Reliance Industries.

Future Retail was already going through a rough time with a debt of ₹10,000 crore. The Reliance-Future deal was supposed to come as a saviour for the company, its employees and stakeholders, CEO Kishore Biyani had said previously.

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