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Future Enterprises gains after selling 14% in subsidiary

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Capital Market
Last Updated : Jun 30 2016 | 3:47 PM IST

Future Enterprises rose 3.51% to Rs 25.05 at 15:15 IST on BSE after the company said it executed shareholders agreement and share purchase agreement for sale of 14% stake in a subsidiary.

The announcement was made after market hours yesterday, 29 June 2016.

Meanwhile, the BSE Sensex was up 261.82 points, or 0.98%, to 27,001.67.

On BSE, so far 2.79 lakh shares were traded in the counter, compared with an average volume of 1.83 lakh shares in the past one quarter. The stock hit a high of Rs 26 and a low of Rs 24.95 so far during the day. The stock hit a 52-week high of Rs 28.55 on 26 May 2016. The stock hit a 52-week low of Rs 13.08 on 24 August 2015. The stock had underperformed the market over the past one month till 29 June 2016, falling 6.74% compared with Sensex's 0.27% gains. The stock had, however, outperformed the market in past one quarter, rising 41.27% as against Sensex's 5.52% rise.

The mid-cap company has an equity capital of Rs 86.39 crore. Face value per share is Rs 2.

Future Enterprises said that on 28 June 2016, company has executed shareholders agreement and share purchase agreement for sale of 14% equity shares (12.75% holding of the company and 1.25% holding of management team) of Future Supply Chain Solutions (FSCSL), a subsidiary of the company, to Griffin Partners. Post sale of 12.75% stake of FSCSL, the company will continue to be the holding company of FSCSL and will hold majority stake of 57.42% in FSCSL.

Future Enterprises had announced on 6 April 2016 that SSG Capital Management Group is investing up to Rs 580 crore to acquire 40% stake of FSCSL from the existing shareholders of the company at a valuation of up to Rs 1450 crore. This will include 14% stake to be acquired from Future Retail and the management team collectively and 26% from another minority shareholder SKC1. FSCSL was incorporated in 2007 and is promoted by Future Retail and is fully IT enabled end to end supply chain and logistic company.

Separately, Future Enterprises announced after market hours yesterday, 29 June 2016 that the Committee of Directors of the company at a meeting held on 29 June 2016, has considered, approved & allotted 750,10.25% secured redeemable non-convertible debentures (NCDs) of Rs 10 lakh each, aggregating to Rs 75 crore, on private placement basis.

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Future Enterprises' net profit rose 60.3% to Rs 16.53 crore on 75.3% decline in net sales to Rs 676.88 crore in Q4 March 2016 over Q4 March 2015.

Future Enterprises, formerly Future Retail, and is into retail infrastructure after demerging retail business into Bharti Retail.

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First Published: Jun 30 2016 | 3:13 PM IST

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