Shares of Reliance Industries (RIL) and Future Group companies were in demand after Delhi High Court quashed an order that had stalled Future Group's deal to sell its retail assets to conglomerate RIL.
A New Delhi court last week had sided with Future's partner Amazon Inc's challenge and put Future's $3.4 billion asset sale deal with RIL on hold, which led to an appeal from the Indian retail group.
The e-commerce giant Amazon had reportedly argued that Future breached certain 2019 contracts by agreeing to the deal with RIL.
Future Retail (FRL) had filed an appeal before the Division Bench of the Delhi High Court, against an ad interim status quo order dated 2 February 2021 (Impugned Order) passed by a Ld. Single Judge in proceedings filed by Amazon.Com NV Investment Holdings LLC (Amazon) asking for a stay on the proposed transaction with the Reliance Group.
"A Division Bench comprising of the Chief Justice D. N. Patel and Justice Jyoti Singh has stayed the operation and effect of order passed by the Ld. Single Judge, for the prima facie reason that the company is not a party to the shareholders agreement dated 22 August 2019 executed between Amazon, Future Coupons and the promoters of FRL, under which arbitration was initiated by Amazon in Singapore. The court also observed that statutory authorities cannot be restrained in private litigation from acting in accordance with law," Future Retail said in a stock exchange filing.
Shares of Reliance Industries (RIL) gained 1.45% to Rs 1979.75.
Among the Future Group stocks, Future Retail (up 9.77%), Future Lifestyle Fashions (up 10%), Future Consumer (up 9%) and Future Enterprises (up 9%) 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).
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