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Future Retail jumps after board OKs demerger of home retail ops

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Future Retail rose 4.05% to Rs 304.70 at 14:30 on after the company announced the demerger of its home retail operations.

The announcement was made during trading hours today, 20 April 2017.

Meanwhile, the S&P Sensex was up 49.77 points, or 0.17% to 29,386.34.

On the BSE, 1.96 lakh shares were traded in the counter so far, compared with average daily volumes of 1.21 lakh shares in the past one quarter. The stock had hit a high of Rs 312.85 so far during the day, which is also record high for the counter. The stock had hit a low of Rs 290.40 so far during the day. The stock hit a record low of Rs 116.10 on 5 December 2016.

The stock had outperformed the market over the past one month till 19 April 2017, rising 15.14% compared with 0.50% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 76.42% as against Sensex's 7.43% rise.

The large-cap company has equity capital of Rs 94.36 crore. Face value per share is Rs 2.

Future Retail announced that its board approved demerging the company's home retail business operated via HomeTown stores into Praxis Home Retail. Post the demerger, the company will list Praxis Home retail on stock exchanges. Praxis Home will issue 1 share to Future Retail shareholders for every 20 shares held, the filing said.

Further, the company's board also approved raising the firm's foreign investment limit to 49% from 24%.

Future Retail's net profit rose 87.7% to Rs 101.05 crore on 77.4% increase in net sales to Rs 4321.75 crore in Q3 December 2016 over Q3 December 2015.

Future Retail operates hypermarket and home solutions retail formats.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 20 2017. 09:38 IST