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Future Retail board approves Hypercity Retail deal

Press Trust of India  |  New Delhi 

The board of Future Retail today approved the "scheme of arrangement" with with regard to its Rs 655-crore of Hypercity Retail in a stock-and-deal.

In the meeting, the board of Future Retail Ltd (FRL) "inter alia considered and approved the scheme of arrangement between Hypercity Retail and Future Retail Ltd," according to a filing.

owns 51.09 per cent stake in Hypercity Retail Ltd (HRIL) and rest is owned by the promoter group and others.

The loss-making Hypercity had a turnover of Rs 1,191 crore in 2016-17.

On October 5, the board of both the companies decided on the and according to the term sheet, Future Retail Ltd (FRL) will allot 93.1 lakh with a face value of Rs 2 each to Hypercity promoters, aggregating to Rs 500 crore, on a preferential basis.

On completion of the transaction, Hypercity will become a wholly-owned subsidiary of Future Retail.

Under the deal, the promoters of Hypercity -- Shoppers Stop, RC Raheja and his family, CL Raheja and family, Jyoti C Raheja along with Chandru L Raheja and NC Raheja and family and B S Nagesh and family -- will exit the company.

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

First Published: Wed, December 06 2017. 21:10 IST