On Tuesday, shares of Reliance Industries Limited (RIL) and those of the Future Group companies rallied after the Delhi High Court lifted an order that halted the Rs 24,713 crore deal. A single-judge bench order directed a 'status quo' on Future Retail-RIL deal till the next hearing.
RIL shares rose 2% to Rs 1,989.60 on NSE, while shares of Future Group companies were up 5 to 10%. Future Retail shares were up by 10% to Rs 80.50.
A two-judge bench said that Amazon has no reason to stall the deal, and regulatory authorities should not be prevented from discharging their statutory duties, overturning a single-judge ruling last week that put the Future-Reliance deal on hold.
The latest order comes as a huge relief for the cash-strapped Future Group, which is banking on the deal with Reliance Industries to prevent a potential bankruptcy.
On 2 February, an interim order by a Delhi high court judge had halted Future Group's sale of its retail, wholesale, logistics and warehousing assets to RIL.
"A division bench has stayed the operation and effect of order passed by the Ld. Single Judge, inter alia, for the prima facie reason that the company is not a party to the shareholders' agreement dated 22 August 2019 executed between Amazon, Future Coupons Pvt. Ltd (FCPL) and the promoters of FRL (Future Retail Ltd), under which arbitration was initiated by Amazon in Singapore," Future Retail said in a stock exchange filing.