Future Retail share hit upper circuit of 5% today after Mukesh Ambani-led Reliance Retail Ventures extended the timeline to complete its Rs 24,713 crore deal with Kishore Biyani-led Future group for six months. The stock has gained 10.07% in the last 2 days.
The stock opened with a gain of 3.68% at Rs 46.95 against previous close of Rs 44.75 on BSE. Later, Future Retail Stock touched an intraday high of Rs 47, rising 4.91%. Future Retail share is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. However, the share has lost 34% in one year and fallen 40% since the beginning of this year.
Future Retail, in a regulatory statement, confirmed Reliance Retail has extended the timeline for the "Long Stop Date" from March 31, 2021 to September 30, 2021. The deal has been opposed by Jeff Bezos-led Amazon, and both Future and RIL are facing legal hurdles in sealing the deal.
"Pursuant to the provisions of scheme and other transaction documents executed in relation thereto, RRVL has in exercise of the right provided thereunder, extended the timeline for 'Long Stop Date' from March 31, 2021 to September 30, 2021 which has been duly acknowledged by Reliance Retail and Fashion Lifestyle Limited, wholly-owned subsidiary of RRVL," it said.
Long Stop, an established practice in mergers and acquisition transaction, is a timeframe in which parties agree on which all the conditions precedent for a transaction need to be fulfilled and the transaction completed.
Future Retail share surged today despite the broader markets crashing amid record Covid-19 cases on Sunday and Maharashtra undergoing partial lockdown. While Sensex lost 1,391 points to 48,638, Nifty slipped 388 points to 14,479 in early trade.