Why Future Enterprises share fell 4% after three sessions of gains
BusinessToday.In September 30, 2020
Future Enterprises share fell over 4% today after the firm reported a fresh default on interest payment of non-convertible debentures (NCDs). Stock of Future Enterprises lost up to 4.44% to Rs 12.90 against previous close of Rs 13.50 on BSE.
The stock has fallen after 3 days of consecutive gain. The share trades higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages. The share has fallen 35.21% in one year and lost 39.08% since the beginning of this year. In a month, the share is down 34.41%.
Total 4.77 lakh shares changed hands amounting to turnover of Rs 63.61 crore on BSE.
Market cap of the firm fell to Rs 652.48 crore.
In a regulatory filing on Tuesday, the company said it has defaulted on interest payment of Rs 16.11 crore for a gross principal amount of Rs 332 crore.
"The company is unable to service its obligations in respect of the interest on non-convertible debentures due on September 27, 2020, since September 27, 2020 was holiday, interest was due on September 28, 2020," said Future Enterprises.
The obligation had a coupon rate of 9.60 per cent per annum and was paid on half-yearly basis on March 27 and September 27 each year. On September 23, the stock of Future Enterprises fell 5% after it defaulted on interest payments of Rs 15.86 crore for its non-convertible debentures.
On September14, 2020, the Kishore Biyani-led Future Group firm said it defaulted on payment of commercial paper of Rs 90 crore. On August 20, it had defaulted on interest payment of non-convertible debentures (NCDs) worth a total of Rs 265 crore. FEL develops, owns and leases retail infrastructure for the Future Group.