Future Group shares rise on reports Amazon may buy stake in Future Retail

Future Retail has soared 19% to Rs 518 in intra-day trade, while Future Enterprises, Future Consumer, Future Market Networks and Future Supply Chain were up in the range of 7% to 15% on the BSE.

Shares of Future Group companies have rallied up to 19% on the BSE after the media report suggested that Amazon.com Inc is likely to buy a minority stake in Future Retail.

Future Retail has soared 19% to Rs 518 on back of an over six-fold jump in trading volumes. A combined 2.37 million equity shares changed hands on the BSE and NSE till 02:59 PM.

Future Enterprises has surged 15% to Rs 43, followed by Future Consumer (12% to Rs 45.25), Future Market Networks (12% at Rs 76.80) and Future Supply Chain (7% at Rs 681). In comparison, the S&P BSE Sensex was trading 0.66% or 230 points higher at 35,096.

Amazon.com Inc is likely to buy at least 7% to 8% stake in India's Future Retail through an investment arm, CNBC-TV 18 reported, citing sources.

The potential cash-and-stock deal, which is in its final stages, could be worth Rs 25 billion ($338 million) and is likely to be signed in the next two weeks, the channel said. CLICK HERE TO READ FULL REPORT

“In the course of its business, the Company evaluates various possibilities, including in relation to business association with third parties, which is always a subject matter of further feasibility studies and the need for requisite consents in accordance to the applicable laws,” Future Retail said on August 27, 2018. The company had made a clarification on news report that "Google, Paytm Mall may team up to shop for the Future Retail stake."