Share of Future Retail hit upper circuit for the third straight session on Wednesday after Competition Commission approved Reliance Industries (RIL)'s proposed acquisition of retail, wholesale, logistics, and warehousing businesses of Future Group.
Future Retail stock price has been hitting upper circuits for the third consecutive session today. The stock has given investors 35% returns in last 5 days.
Future Retail stock price today opened with a gain of 4.95% at the intraday high of Rs 91.2 and has since traded at this price. There were only buyers and no sellers offering the share.
The stock has delivered 21% returns to investors in the last one week and 15% in one month. However, It has fallen 73% since the beginning of this year and 72.33% in one year.
Market cap of the firm rose to Rs 4,945 crore. The share stands higher than 5, 20, and 50-day moving averages but lower than 100 and 200-day moving averages.
Besides Future Retail, Future Lifestyle Fashions, Future Consumer, Future Enterprises Ltd, Future Enterprises DVR, Future Supply Chain as well as Future MarketNetwork shares also gained by 5% each for third straight day on BSE.
Future Group stocks have been in heavy demand since last Friday, since the regulator Competition Commission of India (CCI), which keeps a tab on unfair business practices across sectors, said in a tweet that it has approved "acquisition of retail, wholesale, logistics and warehousing businesses of Future Group by Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited".
Further, the Delhi High Court on Friday also reserved orders in the suit filed by Future Retail -one of the country's top retailers against Amazon in connection with its deal with Reliance. Future Group has argued it entered into the deal with RIL because the company's retail business was severely hit during the COVID-19 pandemic and it was critical to protect all its stakeholders.
The share hit a 52-week high of Rs 387.90 and 52 week low of Rs 61.05.
E-commerce firm Amazon bought a 49% stake last year in one of Future Group's unlisted firms, with the right to buy into the listed flagship Future Retail Ltd.
The US firm has been opposing the deal between Future Group and Reliance Industries. Amazon had approached the CCI and the country's market regulator SEBI, claiming that its pre-existing agreements with the unlisted Future Coupons Ltd barred a transaction with a number of persons and companies, including Ambani's Reliance Group, which is fast expanding its e-commerce business and threatening the dominance of the U.S. giant.
The deal is yet to receive approval of market regulator SEBI.