Future Retail share hit upper circuit of 10% in early trade today after the Competition Commission cleared Reliance's proposed acquisition of retail, wholesale, logistics and warehousing businesses of Future Group.
Future Retail share opened with a gain of 9.95% at Rs 79.25 against previous close of Rs 72.05 on BSE. The stock saw only buyers no sellers on BSE. Market cap of the firm rose to Rs 4,248 crore. The stock has gained 16.26% in the last 3 days.
The share trades higher than 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages. The share has fallen 76.25% in one year and lost 76.9% since the beginning of this year. However, in a week, the small cap share has gained 16.26%.
The share hit a 52-week high of Rs 387.90 and 52 week low of Rs 61.05. On NSE, the volume of shares traded was 98.94 lakh which surpassed the 30 day average of 37.36 lakh.
Meanwhile, share of Reliance Industries too rose 3.76% in early trade after the regulator approved the deal with Future Group.
RIL share rose 3.73% or Rs 71 to Rs 1970 against previous close of Rs 1,899. The large cap stock has gained after four days of consecutive fall. In a tweet on November 20, the regulator said it has approved "acquisition of retail, wholesale, logistics & warehousing businesses of Future Group by Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited".
As per the notice submitted to the CCI, there are at least seven target entities. They are Future Enterprises, Future Consumer Ltd, Future Lifestyle Fashions Ltd, Future Retail Ltd, Future Market Networks Ltd, Future Supply Chain Solutions Ltd and Futurebazaar India Ltd and its subsidiaries.
E-commerce firm Amazon has been opposing the deal between Future Group and Reliance Industries. Last year, Amazon bought 49% stake in one of Future Group's unlisted firms, with the right to buy into the listed flagship Future Retail Ltd.
Amazon has claimed that its contract with the unlisted Future Coupons Ltd barred a transaction with a number of persons and companies, including Reliance.