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Future Retail Hits Lower Circuit For 6th Straight Day; Down 40.5% In Sept

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Shares of Future Retail Ltd have been locked in 5 percent lower circuit for the sixth straight trading session at Rs 96.55 on Wednesday on NSE. The stock has fallen 40.5 percent in the month so far from Rs 162.32 on 31 August.

Future Retail Hits Lower Circuit For 6th Straight Day; Down 40.5% In Sept
 

The company that owns brands like Big Bazaar, fbb, Foodhall, Easyday and Nilgiris, on Monday, reported a consolidated net loss of Rs 478 crore for the March-ended quarter in comparison with a net profit of Rs 203 crore in the same period a year ago.

Future Retail said that the nationwide lockdown for COVID-19 "significantly impacted the company's operational capabilities" and was "actively working to minimise the impact of this unprecedented situation."

On 29 August, Future Group announced the merger of some of its entities, namely Future Retail, Future Lifestyle Fashions, Future Consumer, Future Supply Chains and Future Market Networks into Future Enterprises Ltd. Further, retail and wholesale business of FEL that includes key formats like Big Bazaar, fbb, Foodhall, Easyday, Nilgiris, Central and Brand Factory will be acquired by Reliance Retail and Fashion Lifestyle Limited (RRFLL), a subsidiary of Reliance Industries Limited (RIL).

Following the announcement, shares of Future Retail had jumped from its corrected price of Rs 135 on 28 August to Rs 162.35 on 31 August.

However, even after the acquisition announcement, Fitch Ratings had placed Future Retail's issuer default rating of C and the rating on its 500 million dollars 5.6 percent senior secured notes due in 2025 of C with a recovery rating of RR4 on rating watch positive.

"FRL's liquidity position remains under severe pressure as a result of the impact of the India-wide coronavirus-related lockdown measures, and we believe that this will continue to be the case if the deal with Reliance Retail Venture (RRVL) is not completed," it said.

Read more about: future retail future group
Story first published: Wednesday, September 9, 2020, 14:45 [IST]
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