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Future Retail crashes on turning ex-scheme of arrangement

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Capital Market
Last Updated : Jun 21 2013 | 3:30 PM IST

Meanwhile, the S&P BSE Sensex was up 57.88 points, or 0.31%, to 18,777.17.

On BSE, 94.54 lakh shares were traded in the counter as against an average daily volume of 6.04 lakh shares in the past one quarter.

The stock hit a low of Rs 83.70 so far during the day, which is also a 52-week low for the counter. The stock hit a high of Rs 132.10 so far during the day. The stock had hit a 52-week high of Rs 275.75 on 22 January 2013.

The stock had outperformed the market over the past one month till 20 June 2013, sliding 0.47% compared with the Sensex's 7.44% fall. The scrip had, however, underperformed the market in past one quarter, falling 7.21% as against Sensex's 0.87% fall.

The mid-cap company has an equity capital of Rs 46.31 crore. Face value per share is Rs 2.

The Future Group demerged its fashion businesses and set up the new company- Future Lifestyle Fashions Limited (FLFL), which will have a portfolio of over two dozen fashion and lifestyle brands.

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In November 2012, the boards of Future Retail and Future Ventures India approved a proposal to consolidate their fashion businesses into a new to be listed entity, Future Lifestyle Fashion, which would emerge as one of India's largest integrated fashion brands and retail company.

The respective boards approved the demerger of the fashion businesses of Future Retail consisting of its Central, Brand Factory, aLL and Planet Sports formats, fashion brands, sourcing and distribution businesses, and the demerger of the fashion businesses of Future Ventures India consisting of Indus League, Lee Cooper, Celio, Holii, Indus Tree and strategic investments in AND, Biba and Turtle into Future Lifestyle Fashion.

Post this realignment, the Future Group will have three separate companies: Future Ventures, an operational entity centered around food and FMCG; Future Fashion & Lifestyle, with all the fashion brands and retailing assets; Future Retail, which will house the supermarkets like Big Bazaar.

The exchange ratio recommended by the valuers and approved by both the boards is 1 equity shares of Future Lifestyle Fashions, for every 3 equity/DVR shares held in Future Retail, and 1 equity share of Future Lifestyle Fashions, for every 31 equity shares held in Future Ventures India.

Post the realignment, shareholders of Future Retail will hold 49.8% in Future Lifestyle Fashions, shareholders of Future Ventures India will hold 30.5% and 19.7% will be held by Future Retail as a corporate entity.

The company has fixed 24 June 2013 as the record date for determining share entitlement to shareholders of the company.

Future Retail's net profit declined 54.51% to Rs 2.47 crore on 17.59% drop in net sales to Rs 911.46 crore in Q1 March 2013 over Q1 March 2012.

Future Retail, earlier known as Pantaloon Retail (India), is the flagship company of the Future Group. It has presence in 93 cities and 60 rural locations across the country through over 17 million square feet of retail space.

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First Published: Jun 21 2013 | 3:13 PM IST

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