Future Group shares fall 5% as Delhi HC orders status quo on Reliance deal

Future Retail said the Company will explore all legal remedies and take appropriate steps to pursue the scheme of arrangement.

Shares of Future Group companies were locked in lower circuit on the BSE on Wednesday, in an otherwise strong market, after the Delhi High Court on Tuesday asked Future Retail to maintain status quo with respect to its $3.4 billion (about Rs 24,700 crore) deal with Reliance Retail. The court said it was satisfied that an immediate interim order was required to be passed to protect the rights of Amazon. CLICK HERE FOR FULL DETAILS

Future Retail (Rs 78.10), Future Lifestyle Fashions (Rs 88.35), Future Consumer (Rs 8.21), Future Enterprises (Rs 11.73) and Future Supply Chain Solutions (Rs 100.15) were locked in lower circuit of 5 per cent on the BSE. In comparison, the S&P BSE Sensex was up 1.2 per cent at 50,371 at 02:16 pm.

Meanwhile, Future Retail today informed the stock exchanges that it has filed an appeal in the Delhi High Court against the status quo order on its deal with Reliance Industries. The company said it will explore all legal remedies and take appropriate steps to pursue the scheme of arrangement.

In a media statement on Tuesday, Future Retail said the company, after due approval from the Competition Commission of India (CCI) and no objection from the Securities and Exchange Board of India (SEBI), had filed the scheme of arrangement before the National Company Law Tribunal (NCLT), Mumbai on January 26, 2021. The application is yet to be taken up by NCLT.

"The Learned Single Judge, Justice Midha, of Hon’ble Delhi High Court today, in a petition filed by Amazon for enforcement of the interim award of the Emergency Arbitrator, has ordered status quo with respect to the scheme of arrangement. The company is legally advised that the basis of the interim award of the Emergency Arbitrator has been superseded by the judgement dated December 21, 2020, passed by the Learned Single Judge, Justice Mukta Gupta of Hon’ble Delhi High Court. The company will explore all legal remedies and take appropriate steps to pursue the scheme of the arrangement," it said.