This Article is From Apr 25, 2022

Future Group Firms' Shares Plunge Nearly 20% After Reliance Deal Falls Through

Future Groups' shares faced heavy drubbing, tanking by 20 per cent after Reliance called off the deal as Future Group's secured creditors rejected it.

Future Group Firms' Shares Plunge Nearly 20% After Reliance Deal Falls Through

Future Group stocks plunge after Reliance deal falls through

New Delhi:

Shares of Future Group companies fell sharply on Monday, some as much as 20%, after India's biggest retailer Reliance called off its Rs 24,713-crore deal with the group over the weekend, pushing its flagship Future Retail towards a possible bankruptcy process.

Shares of Future Supply Chain Solutions, Future Retail, Future Lifestyle Fashions, Future Consumer and Future Enterprises fell between 5 per cent and 20 per cent.

With Reliance calling off the deal, Future, once one of India's biggest retailers, now faces the prospect of a bankruptcy process.

"There is nothing much left for the company (Future Retail). They don't have money, shops. Whatever Reliance has not taken over yet have already been shut down. Future Retail is likely to file for bankruptcy," said Deepak Shenoy, founder and chief executive of Capitalmind in Bengaluru.

Reliance said on Saturday the deal, at the centre of many legal battles since 2020, "cannot be implemented" after Future's secured creditors rejected it.

Future has been in a long-drawn legal battle with U.S. e-commerce giant Amazon over the $3.4 billion sale of its retail assets to rival Reliance Industries.

Amazon had obtained legal injunctions that stalled Future's deal with Reliance, sparking a series of legal battles in various forums, including an arbitration panel in Singapore.

However, Reliance suddenly took control of hundreds of Future stores in February, citing non-payment of rent, after assuming many of the leases held by cash-strapped Future.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)