Future Retail slumps 34% in five days

Future Retail hit a lower circuit of 5% at Rs 106.85, extending its losing streak to fifth consecutive trading session.

Shares of Future Retail have lost 34.17% in five trading sessions from its previous closing high of Rs 162.30 on 31 August 2020. The counter hit a lower circuit for the fifth trading session in a row. Bourses have changed the counter's circuit filter to 5% from 10%.

On 29 August 2020, Reliance Industries (RIL)'s subsidiary Reliance Retail Ventures (RRVL) said it is acquiring the retail & wholesale business and the logistics & warehousing business from the Future Group as going concerns on a slump sale basis for Rs 24,713 crore.

On 2 September, Fitch Ratings placed Future Retail's (FRL) Issuer Default Rating (IDR) of 'C' and the rating on its $500 million 5.6% senior secured notes due in 2025 of 'C' with a Recovery Rating of 'RR4' on Rating Watch Positive. Fitch changed the rating after Future Retail agreed to sell its business to Reliance Retail and Fashion Lifestyle Limited (RRFLL). Fitch said that risks remain over FRL's liquidity and its ability to continue to finance its ongoing obligations until the transaction with RIL closes.

AcuitRatings & Research on 4 September reaffirmed rating on Future Retail's NCDs at 'ACUITE C' and company's commercial paper at 'ACUITE A4'

The stock hit a 52-week low of Rs 61.05 on 9 April 2020 and a 52-week high of Rs 415.05 on 12 September 2020.

Future Retail is engaged in the business of retailing a range of household and consumer products through departmental store facilities under various formats. The company is primarily engaged in the business of multi-brand retail trade.

On a consolidated basis, Future Retail posted a net loss of Rs 477.63 crore in Q4 March 2020 as against s net profit of Rs 199.31 crore reported in Q4 March 2019. Net sales declined nearly 18% to Rs 4,492.36 crore in Q4 March 2020 over Q4 March 2019.

Powered by Capital Market - Live News