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RIL, Future Group shares in demand after Sebi nod

Capital Market 

Shares of Reliance Industries (RIL) and Future Group companies were in demand after the market regulator Sebi approved the deal between the two, subject to a number of conditions in the composite scheme of arrangement.

The Securities and Exchange Board of India (Sebi) on Wednesday gave a go-ahead to RIL's Rs 24,713-crore deal to buy Future Group's retail assets.

Shares of Reliance Industries gained 2.85% to Rs 2113.35.

Among the Future Group stocks, Future Retail (up 5%), Future Lifestyle Fashions (up 5%), Future Consumer (up 5%) and Future Enterprises (up 5%) advanced.

In August 2020, RIL announced the acquisition of retail & wholesale business and logistics & warehousing business from the Future Group as going concerns on a slump sale basis for Rs 24,713 crore through its subsidiary Reliance Retail Ventures (RRVL).

Based on the clearance provided by the market regulator, BSE also granted its "no adverse observation" report to the Rs 24,713-crore deal.

Sebi has reportedly said that the litigation pending before the Delhi High Court and arbitration proceedings by the global e-commerce major Amazon contesting the deal should be specifically disclosed by Future Group while seeking approval for the scheme of arrangement from shareholders or the National Company Law Tribunal.

It has also reportedly held that Sebi's go-ahead on the draft scheme of arrangement would be subject to the outcome of these proceedings.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Thu, January 21 2021. 12:40 IST