Future Group shares rose in early trade today after Mukesh Ambani-led Reliance Industries (RIL) said it would acquire the retail & wholesale business and the logistics & warehousing business from the Future Group on a slump sale basis for Rs 24,713 crore.
While Future Enterprises share hit upper circuit of Rs 21.20, a rise of 5%, Future Retail share price opened 20% higher at Rs 162.30 on BSE. On the other hand, Reliance Industries share was trading 1.32% higher at Rs 2,143 against previous close of Rs 2115.60 on BSE.
Later, Future Retail share was trading 17.38% or Rs 23.50 higher at Rs 158.75 against previous close of Rs 135.25.
RIL will conduct the acquisition through its subsidiary Reliance Retail Ventures Limited.
Other group stocks such as Future Consumer, Future Market Network , Future Lifestyle Fashions and Future Supply Chain also gained in early trade.
Future Consumer share opened 5% or Rs 0.57 higher at Rs 12.05 against previous close of Rs 11.48. Similarly, Future Market Networks share gained 4.88% to Rs 27.95 against previous close of Rs 26.65.
Future Group said, "Post this exercise, FEL will emerge strong with businesses in manufacturing and distribution of FMCG products and integrated fashion sourcing and merchandising. These businesses will further benefit from supply agreement with RRFLL. This deal will also enable FEL to focus on the creation of new-age brands in the FMCG and fashion space and expand its reach. The transaction will help FEL to expand with a focussed business model and a stronger balance sheet."
Shares of Future Lifestyle Fashions and Future Supply Chain hit upper circuit of 5% in early trade. While Future Lifestye Fashions share was trading at Rs 152.35, stock of Future Supply Chain rose to Rs 158.60 on BSE.
By Aseem Thapliyal