Future Retail freezes at 5 per cent upper circuit on RIL buzz

The shares of Future Retail locked in at upper circuit of 5 per cent on Friday after market reports suggested that Future Group is considering to sell stakes in Future Retail and some other units to Mukesh Ambani’s Reliance Industries Limited (RIL).

Previously, in August 2019, Amazon.com Inc, agreed to purchase 49 per cent of one of Future Group’s unlisted firms, which allowed it to further buy into Future Retail after a period of three to 10 years. The partnership between Future Group and Amazon remains strong with the latter becoming the authorised online sales channel for Future Retail’s stores that sell everything from groceries to cosmetics and apparel.

In March, Future Group promoter Kishore Biyani had defaulted on loans and various rating agencies had downgraded credit ratings of Future Retail after the default and invocation of pledged shares by the lenders. Thus, if this deal is finalised, it can act as a breather to Future Group.

On Friday, for the second consecutive trading session, the shares of Future Retail locked in at upper circuit of 5 per cent. The share price of Future Retail is Rs 111.70 per share, up by 4.98 per cent or Rs 5.30 per share. The 52-week high is Rs 489.25 and 52-week low is Rs 61.05 on BSE.

The shares of Future Consumer also locked in at an upper circuit at Rs 14.74 per share, gaining by 4.99 per cent or Rs 0.70 per share. The 52-week high is Rs 42.10 and 52-week low is Rs 5.44 on BSE.

The stock of Future Lifestyle Fashions was trading at Rs 149.65, up by 3.85 per cent or Rs 5.55 per share. The 52-week high is Rs 500 and 52-week low is Rs 91.40 on BSE.