Future Market climbs on acquiring further stake in JV

Future Market Networks rose 4.14% to Rs 73 at 10:00 IST on BSE after the company announced that it will acquire 50% stake in Future Retail Destination from IL&FS Township and Urban Assets.

The announcement was made after market hours yesterday, 31 May 2017.

Meanwhile, the S&P BSE Sensex was down 8.90 points, or 0.03%, to 31,136.90. The S&P BSE Small-Cap index was up 109.19 points, or 0.72%, to 15,189.40.

On the BSE, 1,178 shares were traded in the counter so far, compared with an average volume of 31,640 shares in the past one quarter. The stock had hit a high of Rs 74.15 and a low of Rs 70.50 so far during the day. The stock had hit a 52-week high of Rs 93.95 on 15 March 2017. The stock had hit a 52-week low of Rs 17.60 on 7 June 2016.

The stock had dropped 6.71% in three sessions to Rs 70.10 yesterday, 31 May 2017 from a close of Rs 75.15 on 26 May 2017.

The stock had underperformed the market over the past one month till 31 May 2017, falling 14.3% compared with 4.1% gains in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 30.78% as against Sensex's 8.36% gains. The scrip had also outperformed the market in past one year, gaining 202.16% as against Sensex's 16.79% gains.

The small-cap company has equity capital of Rs 56.29 crore. Face value per share is Rs 10.

Future Market Networks announced that it executed a share purchase agreement (SPA) with IL&FS Township and Urban Assets (ITUAL) to acquire 50% equity share capital namely, 1.5 crore equity shares held by ITUAL in Future Retail Destination (FRDL).

FRDL is set up for development of infra logistic parks across India as a special purpose vehicle company. FRDL shall become wholly owned subsidiary of the company upon completion of the transaction.

The total consideration payable by the company under the SPA is Rs 14 crore. In terms of the SPA, the company has paid an amount of Rs 9 crore and the balance consideration of Rs 5 crore shall be paid on or before 30 September 2018.

On 22 May 2017, at the time of announcement of Q4 results, the board had approved purchase of 50% equity shares held by IL&FS Township & Urban Assets in the joint venture company set up for development of infra logistic park pursuant to a joint venture agreement dated 18 April 2012.

Future Market Networks reported net loss of Rs 8.64 crore in Q4 March 2017 compared with net profit of Rs 53.18 crore in Q4 March 2016. Net sales rose 6.9% to Rs 23.7 crore in Q4 March 2017 over Q4 March 2016.

Future Market Networks aims to amend the outdated wholesale infrastructure, improve the supply chain and clear logistics bottlenecks to bridge the efficiency gap between demand and supply.

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