Future Retail snaps three-day streak

Future Retail hit a lower circuit of 10% at Rs 146.10 amid profit taking after a recent steep surge.

The stock gained 38.4% in the past three sessions to end at Rs 162.30 on Monday, from its recent closing low of Rs 117.30 recorded on 26 August 2020.

The recent rally was backed by the latest deal between Reliance Industries (RIL) and Future Group. On Saturday (29 August 2020), RIL's subsidiary Reliance Retail Ventures (RRVL) announced the acquisition of the retail & wholesale business and the logistics & warehousing business from the Future Group as a going concern on a slump sale basis for Rs 24,713 crore.

RIL said that the acquisition of the retail, wholesale and supply chain business of the Future Group complements and makes a strong strategic fit into Reliance's retail business. This will help Reliance retail to accelerate providing support to millions of small merchants in increasing their competitiveness and enhance their income during these challenging times. Future Group's portfolio composition in apparel, general merchandise and own FMCG brands will allow for a wider offering to its customers.

Meanwhile, Norges Bank, on behalf of Norwegian sovereign wealth fund, sold 95 lakh shares or 1.75% stake in Future Retail on Monday (31 August), NSE bulk deals data showed. It held 1.23 crore shares or 2.28% stake in the company as on 30 June 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.

The company's consolidated net profit fell 16.7% to Rs 164.56 crore on a 3.3% decline in net sales to Rs 5,193.19 crore in Q3 December 2019 over Q3 December 2018.

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