Future Enterprises skids on defaulting on interest payments of NCDs

Future Enterprises (FEL) fell 3.33% to Rs 13.05 after the future group firm on Tuesday reported a fresh default on interest payment of non-convertible debentures (NCDs).

Future Enterprises (FEL) said it has defaulted on interest payment of Rs 16.11 crore for a gross principal amount of Rs 332 crore.

"The company is unable to service its obligations in respect of the interest on non-convertible debentures due on September 27, 2020, since September 27, 2020 was holiday, interest was due on September 28, 2020," said FEL said.

The obligation had a coupon rate of 9.60% per annum and was paid on half-yearly basis on 27 March and 27 September each year.

On a standalone basis, FEL reported net loss of Rs 279.24 crore in Q1 June 2020 compared with net loss of Rs 12.82 crore in Q1 June 2019. Net sales slumped 93.9% to Rs 66.84 crore during the period under review.

FEL is engaged in the business of multi brand retail trading. Shares of FEL surged 72.84% from its 52-week low of Rs 7.55 hit on 7 April 2020.

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