Future Retail, Future Enterprises hit upper circuit as Sebi clears deal with RIL

future group

Shares of Future Retail and Future Enterprises rose nearly 5% and hit upper circuit limits after Sebi cleared Future Group’s proposed multi-billion dollar deal with Reliance Industries Ltd. On the BSE, Future Retail shares hit the upper circuit of ?81.35, 5% up over the previous close.

Future Enterprises stock also went up by 5% to touch the upper circuit limit of ?12.01. Meanwhile, Reliance Industries Ltd (RIL) was trading at ?2,114.8 during the late morning trade, rising 2.91%.

In a setback to Amazon Inc, the Securities and Exchange Board of India (SEBI) on Wednesday granted approval to the Future Group and Reliance Retail deal.

In August 2020, Kishore Biyani led-Future Group had entered into a ?24,713 crore agreement with Mukesh Ambani’s Reliance Retail. As part of the deal, Future Group was to sell its retail, wholesale, logistics and warehouse businesses to Reliance Retail Ventures (RRVL).

Based of this, the BSE also granted its “no adverse observation” report to the ?24,713-crore deal.

According to a report by PTI, Amazon had written several letters to the SEBI and other regulatory agencies to suspend their review of the deal and not grant it a no objection certification on ground that its challenge to the agreement was before the Delhi High Court.

“It is observed that there are certain ongoing litigations/arbitration/legal proceedings against the draft scheme,” the Sebi said.

“In view of the same, the company is advised that these comments of SEBI on the draft scheme of arrangement are subject to the outcome of any of the ongoing litigations/arbitration/legal proceeding involving the draft scheme and/or the decision by any competent authority/competent court in this regard,” it said.

News Source:- livemint

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