The news is there since yesterday – Mukesh Ambani’s Reliance Retail close to taking over Kishore Biyani led, Future Retail. The stock exchanges have sought a clarification from Future Retail since yesterday afternoon and it is yet to reply.
The stock , which had closed yesterday at Rs.128.95, opened higher at Rs.131.40 and soon zoomed up to hit the 5% UC of the day at Rs.135.35, where it currently remains locked. It is also among the top five gainers on the BSE currently.
Given the dire financial state of the Future group, news is that Kishore Biyani, is all set to exit Future Retail through a stake sale to Mukesh Ambani’s Reliance Retail.
The unconfirmed news is that the deal is at a final stage of negotiations and we will get a formal announcement soon. The market is conjecturing that because Future Retail has not yet clarified to the stock exchanges, maybe there is truth in this news.
Biyani is looking to cede control over all businesses under the Future Retail basket, including Big Bazaar, FBB, Food Hall and Central.
News it that Future Supply Chain Solutions and Future Lifestyle Fashion will also be sold to Reliance Industries.
Post this entire sell off, Biyani will be left with only Future Group’s FMCG business and some of the other smaller group entities.
If one may recollect, Biyani had sold the Pantaloons retail chain to Aditya Birla group in 2012.