Shares of Kishore Biyani-led Future Group companies tanked up to 19 per cent, hitting respective 52-week lows on the BSE in Thursday’s intra-day trade after Future Retail (FRL) said on Wednesday that it was committed to taking all actions necessary to seek value adjustments and reversal of takeover of stores by the Reliance Group.
Moreover, the Supreme Court also lifted a January 5 stay by the Delhi High Court on the Singapore Arbitration Tribunal Centre (SIAC) in the hearing of the case between Amazon and the Future Group.
Future Retail (down 9 per cent at Rs 38.40), Future Enterprises (down 17 per cent at Rs 7.45), Future Lifestyle Fashion (down 9 per cent at Rs 41) and Future Supply Chain Solutions (down 5 per cent at Rs 53.65) were among the Future Group stocks to hit respective 52-week lows on the BSE in intra-day today. In comparison, the S&P BSE Sensex was up 1.58 per cent at 57,712 at 09:58 am.
In the past one week, these stocks have declined between 20 per cent and 25 per cent, as against a 4 per cent rise in the benchmark index.
There have been several media reports and public notices issued by Amazon misreporting that FRL handed over Retail Assets of Future Retail (FRL) to Reliance in breach of orders of Tribunal and Supreme Court of India.
Such reporting is inaccurate and factually erroneous. FRL has not handed over the stores to Reliance Group. On the contrary, FRL’s board had two meetings and notified Reliance Group that such a drastic and unilateral action of Reliance Group to takeover the stores has not only come as a surprise to FRL but also complicated the positive scenario, which had started building up after the CCI order in December 2021, in favour of the Scheme and Future Group.
FRL’s statement came in response to the stock exchanges seeking clarifications over the public notice by Amazon, which had accused Future and Reliance of ‘fraud’.
FRL and its Board remain committed to take all such action as may be necessary to seek value adjustments and reversal of takeover of the stores (leases) by Reliance Group. FRL and its Board is taking steps to arrive at a feasible solution which will be in the interests of all stakeholders, the company said in statement. CLICK HERE FOR STATEMENT
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