Shares of Future Retail hit its 52-week low of ₹29.75 per share on Tuesday, down 29 percent in just 3 sessions after the company informed exchanges that the Future Group has called a meeting for approval of ₹24,713-crore deal with Reliance Retail.
The stock has tanked 29 percent in just 3 sessions and lost over 16 percent in intra-day deals today. In comparison, the benchmark Sensex was trading around 0.4 percent higher amid a volatile session.
Other Future Group stocks were also under pressure and hit their respective 52-week lows in today's session. Future Enterprises shed over 15 percent to hit its 52-week low of ₹6.64, while Future Consumer was also down 15 percent to its 52-week low of ₹4.95 in intra-day deals. Future Lifestyle also lost 15 percent to hit its 52-week low of ₹31.55 in trade today. Future Supply Chain shed 11 percent to its 52-week low of ₹45.80.
As per the press release, the Future Group has called a meeting with the firm's shareholders and creditors on April 20 and 21 over the deal.
The firm added that it was committed to taking all actions necessary to seek value adjustments and reversal of takeover of stores by the Reliance Group.
The Mumbai bench of the National Company Law Tribunal (NCLT) on February 28 passed the order that the meeting of the shareholders will be held on April 20. The meeting for the creditor's nod would be held on the next day, April 21, 2022.
The NCLT had given a go-ahead for convening meetings of shareholders and creditors of respective Future group companies for approval of the scheme of merger and transfer of the business to Reliance Retail.
According to the proposed deal, Future Group's 19 companies operating in retail, wholesale, logistics and warehousing assets would be consolidated into one entity, FEL, and then transferred to Reliance.
In August 2020, Future Group had announced the ₹24,713 crore deal to transfer its retail, wholesale and logistics arms to Reliance Retail.
However, the deal could not be closed as e-commerce giant Amazon took legal actions against Future Group for violation of contracts. Future denies any wrongdoing.