Future Retail Limited's shares on Thursday tanked to 52-weeks low by 19 percent on the Bombay Stock Exchange’s (BSE) intra-trade trading.
The shares of the company slumped after the Kishore Biyani-led firm announced on Wednesday that it was committed to take all the possible actions needed to seek value adjustments and reversal of takeover of stores by the Reliance Group.
The Future Retail was down 9 percent at INR 38.4, the Future Enterprise was down 17 percent at INR 7.45, the Future Lifestyle was down percent at INR 41 and Future Supply Chain Solutions was down 5 percent at INR 53.65.
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The Supreme Court has also lifted a stay by the Delhi High Court on the Singapore Arbitration Tribunal Centre (SIAC) in the case between Amazon and the Future Group.
The recent events come in the wake of Amazon India accusing Future and Reliance of “fraud” as in February Reliance Retail had started taking control of the FRL stores which it has subleased to the Future Group.
Due to alleged non-payment of rents to Reliance Retail, the Reliance Industries had in February seized control of over 300 large-format stores of the Future Groups resulting in their shutting down.
Amazon India had challenged this move at the Delhi High Court.
These include 200 stores where Big Bazaar, a Future Retail Limited hypermarket chain, operated as well as around 100 stores where Central and Brand Factory operated.
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Reliance had shut down many stores of the Future Group in several cities. They have removed their signage and are planning to replace them with Reliance Retail outlets in the coming time (days/weeks). The online deliveries have also been hampered.
FRL has a debt of INR 17,000 crore and it has been classified as a Non-Performing Asset (NPA) as per its lenders.
In August 2020, boards of Reliance Retail and FRL approved the Scheme of Arrangement to transfer the retail and logistics business of the Future Group to Reliance Retail Ventures Limited (RRVL) for a total of INR 24,713 crore.
FRL suffered a loss of INR 4445 crore during the calendar year 2021.
