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

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

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.

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.