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Why Future Retail share price rose over 9% today

Share price of Future Retail rose up to 9.23%  to Rs 124.80 against previous close of Rs 114.25 on BSE

twitter-logoBusinessToday.In | August 25, 2020 | Updated 14:18 IST
Why Future Retail share rose over 9% today
Future Retail share trades higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.

Future Retail share price gained over 9% in early trade after the Kishore Biyani-led firm made interest payment of $14 million (or about Rs 103.77 crore) to investors. The payment was made on the last date of the 30-day grace period granted on the $500 million senior secured notes listed in Singapore. Failure to make the payment may have prompted rating agencies to place the firm in default category.

The debt-laden company is in talks with Mukesh Ambani-led Reliance Industries for a buyout. Reliance Industries might acquire Kishore Biyani-controlled Future Group's retail business for Rs 24,000-27,000 crore.

Reacting to the development, share price of Future Retail rose up to 9.23%  to Rs 124.80 against previous close of Rs 114.25 on BSE.

The stock has gained after two days of consecutive fall. The stock opened with a gain of 8.53% at Rs 124 today. The share trades higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.

The midcap share has fallen 69.28% in one year and lost 64.97% since the beginning of this year. However, in one month, the share has risen 25.31%. Total 10.30 lakh shares changed hands amounting to turnover of Rs 12.48  crore on BSE.

Why Future Retail share price slipped 9% today

Market cap of Future Retail rose to Rs 6503 crore.

The retail firm was originally scheduled to make the interest payment on its 5.60 per cent 2025 dollar notes on July 22, but it missed the deadline. The company was given 30-days grace period to honour interest payment.

"In furtherance to our letter dated July 22, 2020, wherein we had informed about the grace period of 30 days for making payment of interest on above USD Notes. Today, we are pleased to inform that the Company has made the payment of said interest for the half year ended for an amount of $14 million on above USD Notes," Future Retail said in a filing to the Bombay Stock Exchange on Monday.

"We thank you all the investors and USD Notes holders for their continued confidence in us," it added.

Kishore Biyani's Future Retail averts default; inches closer to deal with Mukesh Ambani's Reliance Retail

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Future Retail averts default, pays $14 million interest on bonds

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