Shares of Future Capital Holdings (FCH) rose by more than nine per cent during intra-day trades on Wednesday amid reports that Deccan Chronicle Holdings was acquiring a controlling stake in the Future Group financial services firm for Rs 600-700 crore.
On BSE, shares of FCH touched a high of Rs 148.80, before shedding some of the gains to close at Rs 144.05, 6.39 per cent or Rs 8.65 higher when compared to the previous day's close of Rs 135.40. The volumes also saw a six-fold jump compared to the two-week average.
However, in a clarification issued to the BSE on Wednesday, Pantaloon Retail (India) has denied any such transaction at this stage. Pantaloon Retail (India) holds a 53.67 per cent stake in Future Capital. Interestingly, shares of Pantaloon gained over six per cent to close at Rs 198.15.
Meanwhile, shares of Deccan Chronicle -- which opened on a weak note -- recouped their losses within minutes of opening trade and were quoting four per cent higher than their previous close on the BSE at Rs 49.20 apiece. As the trading session progressed, the shares lost ground and ended the day marginally in the red at Rs 47.05.
According to media reports, India's largest retailer Pantaloon Retail (India) had sold its entire stake in Future Capital Holdings. In a separate transaction, Pantaloon also sold its 26 per cent stake in its insurance joint venture, Future Generali Life, to Mumbai-based Industrial Investment Trust (IITL), the report said.
India's largest retail chain, Pantaloon Retail, and Future Capital are part of Kishore Biyani-run Future Group. Biyani has exited the financial services business through these two transactions, the report said.