Future Retail shares end flat on SSG Capital deal

Shares of Future Retail gained nearly 6 per cent on Thursday as asset management firm SSG Capital Management will acquire 40 per cent stake in Future Supply Chain Solutions from existing shareholders for Rs 580 crore.

Future Supply Chain Solutions (FSC) is a logistics company in which Future Retail holds 70.17 per cent stake. The scrip ended flat.

The stock surged as much as 5.66 per cent to Rs 136.10 on the Bombay Stock Exchange (BSE).

On NSE, it climbed 5.83 per cent to Rs 136.

As per the deal, SSG Capital would acquire 14 per cent stake held by Future Retail (FRL) and its management team in FSC. It would buy the rest 26 per cent from another minority shareholder SKC.

Future Retail MD Kishore Biyani said, "It is a step towards our stated intent of optimal monetisation of some of the investments held by FRL (Future Retail). FRL has followed a multi-pronged approach for strengthening its balance sheet and this partial monetisation of its stake in FSC is a step in this direction."