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 BSE filing.
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 transaction and according to the term sheet, Future Retail Ltd (FRL) will allot 93.1 lakh shares 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.
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