Future Retail extends rally on talk of acquiring Nilgiris

The stock has rallied nearly 30% in past two trading sessions on back of heavy volumes.

Future Retail has surged 10% to Rs 110, extending its previous day’s 20% rally, on the back of heavy volumes on media reports that Future Group is set to acquire southern supermarket chain Nilgiris.

The stock opened at Rs 102 and touched a high of Rs 114 on the BSE. Till 1430 hours, a combined 16.17 million shares representing nearly 7% of total equity of the company changed hands on the counter on the BSE and NSE.

Future Group has in principle agreed to acquire the stake of private equity firm Actis Capital along with the minority shareholding of the promoters, the Economic Times report suggest.

Nilgiris is a leading retailer and food brand in south India, having around 140 stores mostly franchisees.

Meanwhile, with reference to an increase in volume, Future Retail has clarified to BSE that there is no information/ announcement that may have a bearing on the price/volume behavior in the scrip.

The company said it has been following a consistent corporate governance policy to inform stock exchanges of any information/announcement which may have a bearing on the operation/performance of the company and which needs to be brought to the notice of investors at large.