On Wednesday, shares of Future Enterprises Limited (FEL) fell as much as 4 percent to an intraday low of Rs 12.85 after the company defaulted on interest payment of non-convertible debentures (NCDs).
Last week, FEL had defaulted on interest payment of another NCD and before that on 14 September 2020, it defaulted on payment of commercial paper worth Rs 90 crore.
The fresh default amounts to an interest payment of Rs 16.11 crore for a gross principal amount of Rs 332 crore.
"The company is unable to service its obligations in respect of the interest on non-convertible debentures due on September 27, 2020, since September 27, 2020 was a holiday, interest was due on September 28, 2020," FEL said on Tuesday.
It has the obligation to pay a coupon rate of 9.60 percent per annum on these NCDs to subscribers on a half-yearly basis on 27 March and 27 September each year.
Last month, Reliance Industries Limited announced that its subsidiary Reliance Retail Ventures Limited will acquire the Retail & Wholesale Business and the Logistics & Warehousing Business from the Future Group for Rs 24,713 crore. As a part of the acquisition, Future Group will first merge the businesses to be acquired into one Future Enterprises Limited (FEL).
Currently, FEL owns, develops and leases retail infrastructure for the Future Group.