Future Group firms hits 5% upper limit on hopes RIL deal could be clinched soon1 min read . Updated: 19 Aug 2020, 03:27 PM IST
- Future Group is considering selling stakes in its retail arm, Future Retail and other units to Reliance Industries Limited
Mumbai: Shares of Future Group companies hit their upper circuit of 5% on Wednesday as investors hoped that a deal with Reliance Industries Ltd (RIL) could be expedited after Reliance Retail Ventures Ltd, a subsidiary of Reliance Industries, acquired online pharmacy Netmeds.
Future Group is considering selling stakes in its retail arm, Future Retail and other units to Reliance Industries Limited (RIL).
Shares of Future Enterprises, Future Market Networks, Future Consumer, Future Lifestyle Fashions and Future Supply Chain hit the upper circuit of 5% on the BSE. Shares of Future Retail gained 19% to ₹118.80.
In March, Future Group promoter Kishore Biyani had defaulted on loans, and various rating agencies had downgraded credit ratings of Future Retail after the default and invocation of pledged shares by the lenders. Thus, if this deal materializes, it can act as a breather to Future Group.
On Tuesday, RIL acquired majority equity stake in Chennai-based Vitalic Health Pvt. Ltd. and its subsidiaries (collectively known as ‘Netmeds’) for approximately ₹620 crores in cash.