Future Group stocks tank, Future Retail hits 5% lower circuit for 13th day

Shares of Future Group stocks were trading deep in the red on Monday. While Future Supply Chain Solutions was down around 5 per cent at Rs 115.90 apiece on the BSE, Futures Retail was locked in the lower circuit band for the 13th straight day. The stock was frozen at Rs 82.85 apiece on the BSE, down 5 per cent. Future Enterprises, too, was trading with over half a per cent cut at Rs 9. Future Lifestyle hit a 5 per cent lower circuit of Rs 124.10. 

In comparison, the benchmark S&P BSE Sensex was trading 467 points, or 1.57 per cent, lower at 29,348.44 levels. 

As per reports, the coronavirus, or COVID-19, outbreak has impacted the Kishore Biyani-led Future Group's business. The company had signed deals with Amazon, Blackstone, and Nippon group over the past six months.

Further, rating agencies such as CARE and S&P have downgraded bank facilities, thus affecting the sentiment further. For instance, CARE Ratings, on March 26, downgraded Future Retail's long-term bank facilities worth Rs 528 crore to AA- from A+ with negative outlook. The company's long-term non-convertible issue of Rs 199 crore has been downgraded to AA- from A+ with negative outlook. Also, it has been placed on credit watch with negative implications. 

"The revision of ratings assigned to the long-term bank facilities and instruments of Future Retail Limited (FRL) takes into

account significant decline in market capitalisation which along with high promoter pledge is expected to significantly impact

financial flexibility," CARE Ratings said in its report. 

S&P Global Inc, as per reports, has also revised rating of Future Retail's US dollar denominated Notes to B- from BB-. So far in March, share price of the compaby has tanked a whopping 72 per cent, data shows. 

That apart, CARE Ratings has revised long-term bank Facilities - Term Loan rating of Future Enterprise to CARE A. 

According to media reports, Kishore Biyani is exploring a significant stake dilution in Future Retail and a merger of insurance joint venture Future Generali with bigger, well capitalised players. The Group founder is also in talks with PremjiInvest to sell a large chunk of the promoter stake in Future Retail Ltd (FRL) to tide over his liquidity crisis, reports say.