Two days ago, almost all the Future group stocks hit the 5% UC on rumours growing strong that Reliance might take over Reliance Retail.
But today, Future Retail and Future Consumer, both are the top losers on the BSE. Future Retail slumped 12% to Rs.112 and Future Consumer is currently at its 5% LC at Rs.10.68.
30 days ago, Future Retail missed the payment of $14 million interest due on foreign currency convertible bonds worth $500 million. It has got a 30-day grace period, which ends today.
he news is that till now it has not been able to make this interest payment and it is said to be in talks with SBI to raise cash to help pay the interest on the dollar security.
Rating agency, S&P has said that it will downgrade its preliminary rating on Future Retail to ‘D’ if the company misses this grace period deadline too. And even if it does make the payment, its weak liquidity will remain an overarching credit risk.