Future Group shares surge nearly 20?ter Reliance buys a retail business
Future Group’s shares surged nearly 20 percent on Monday after Reliance Industries Limited said ti will buy the group’s retail business in a deal worth Rs 24,713 crore.
Shares of Future Group were up 19.73 percent after the deal, which was announced by Reliance a couple of days ago. It may be noted that shares of Future Enterprises Ltd also jumped five percent and hit the upper circuit.
Future Lifestyle Fashions also rose five percent while Future Consumer Limited was up 4.8 percent. Future Supply Chain Solutions was also up five percent.
Meanwhile, shares of Reliance, India’s most valuable company, also went up marginally after the deal.
Commenting on the deal, Jyoti Roy, DVP- Equity Strategist, Angel Broking, said, “We believe that this acquisition by Reliance Industries Ltd. will help the company further consolidate its position in the retail business and make it the undisputed leader in the retail space.”
It may be noted that shares of several Indian banks that had exposure to the indebted Future Group also rose on Monday. Axis Bank was one of the lenders which gained after the deal. It may be noted that Reliance will also bear nearly Rs 19,000 crore debt of Future Group.
A consortium led by Bank of India has an exposure of 57.50 billion rupees, while Axis Bank and Bank of Baroda Ltd have exposures of 12.5 billion rupees and 7.5 billion rupees, respectively, the newspaper reported, citing data from ICICI Securities.