Shares of Kishore Biyani-led Future Group companies continued to be under pressure. Several group companies traded at their all-time lows after they said in an exchange filing that the group has called for a meeting with their respective shareholders and creditors on April 20 and 21 over approval of a Rs 24,713 crore deal with Reliance Retail.
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Future Lifestyle Fashions, Future Retail and Future Supply Chain touched their respective lows on the BSE in Monday’s intra-day trade.
Individual stocks like Future Retail tumbled over 9% to hit a new low of Rs 35.35. The stock dropped below its earlier low of Rs 38 touched on March 17, 2022, and has lost 16% in the last two trading days. The stock has lost 54% from its 52-week high price of Rs 76.25 hit on June 16, 2021.
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In the past week, the market price of Future Enterprises, Future Retail and Future Lifestyle Fashions have tanked between 15% and 21%, as against a 2.3% rise in the S&P BSE Sensex.
Future Retail said it was committed to taking all necessary measures to revert the takeover of stores by Reliance and seek value adjustments.
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On March 19, 2022, Future Retail, Future Enterprises, Future Lifestyle Fashions, Future Supply Chain and Future Consumer, informed exchanges about procedures and dates for the virtual meetings of shareholders and creditors. The meetings will be held through video conferencing and other audio-visual means, the addendum notice added.
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The meeting to seek the approval of the shareholders would be held on April 20 and for the creditors on April 21, according to the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT) on February 28.
The NCLT had given approval for the holding meetings of shareholders and creditors of respective Future Group companies for approval of the deal of merger and transfer of the business to Reliance Retail.
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According to the deal, Future Enterprises Limited is the transferee company to Reliance Retail. Future Group’s 19 companies engaged in retail, wholesale, logistics and warehousing businesses would be consolidated into one company, FEL, and then transferred to Reliance, according to a PTI report.