Future Retail in limelight

Future Retail is buzzing loud today, zooming up to the top gainers list on the BSE. The stock is currently up almost 4.5% at Rs.69.35, its current intra day high.

The stock is in the limelight post its announcement yesterday late evening. The company has stated that it has sold 22.5% stake in Future General Life Insurance Co to Industrial Investment Trust. This transcation, after all approvals was completed yesterday and Future group holds 52% stake in Future General Life Insurance. FII, Participatie Maatschappij Graafschap Holland NV continues to hold 25.5% stake. Though the company has not announced any financial details, analysts have valued the deal at around Rs.1500 crore. This stake sale could also help the company bring down some of its debt, which is placed at around Rs.4500 crore.

Future Group has been restructuring itself for the past two years to cut debt and align its businesses. Going ahead, we could see some more stake sales.