 "Future Retail locked in lower circuit; stock trades ex-demerger")
Future Retail was locked in lower circuit of 5% at Rs 19 on the BSE after the stock was traded ex-demerger of its retail business undertaking. On Tuesday, the stock had closed at Rs 151 on the BSE.
The company’s scrips with differential voting rights (DVR) too was locked in lower circuit of 5% at Rs 14.10 on the BSE.
Future Retail (FRL) has fixed May 12, 2016 as the record date for the purpose of determining the entitlement for issue of equity shares of Bharti Retail (BRL) to the holders of equity shares and Class B (Series 1) shares.
According to the scheme of arrangement, one fully paid-up equity share of Rs 2 each of BRL would be allotted for every one fully paid-up share held in the company. FRL will also be issuing optionally convertible debentures to the existing holders of the optionally convertible debentures of BRL, for the portion of debt transferred from BRL to the company.
Under a composite scheme of arrangement between FRL and BRL, the retail business undertaking of FRL was demerged and vested in BRL and the retail infrastructure undertaking was demerged from BRL and vested in FRL with effect from 31 October 2015 as a going concern.
Bharti Retail is expected to get listed towards end of the month.
The trading volumes on the Future Retail counter surged an over three-fold. Till 01:25 am, a combined 2.56 million shares changed hands and there were pending sell orders for 3.6 million shares on the BSE and NSE.
The company’s scrips with differential voting rights (DVR) too was locked in lower circuit of 5% at Rs 14.10 on the BSE.
Future Retail (FRL) has fixed May 12, 2016 as the record date for the purpose of determining the entitlement for issue of equity shares of Bharti Retail (BRL) to the holders of equity shares and Class B (Series 1) shares.
According to the scheme of arrangement, one fully paid-up equity share of Rs 2 each of BRL would be allotted for every one fully paid-up share held in the company. FRL will also be issuing optionally convertible debentures to the existing holders of the optionally convertible debentures of BRL, for the portion of debt transferred from BRL to the company.
Under a composite scheme of arrangement between FRL and BRL, the retail business undertaking of FRL was demerged and vested in BRL and the retail infrastructure undertaking was demerged from BRL and vested in FRL with effect from 31 October 2015 as a going concern.
Bharti Retail is expected to get listed towards end of the month.
The trading volumes on the Future Retail counter surged an over three-fold. Till 01:25 am, a combined 2.56 million shares changed hands and there were pending sell orders for 3.6 million shares on the BSE and NSE.