Future Retail rose 2.69% to Rs 541.85 at 10:23 IST on BSE after the company said that its board approved acquisition of Hypercity Retail for Rs 655 crore.
The announcement was made after market hours yesterday, 5 October 2017.Meanwhile, the S&P BSE Sensex was up 175.69 points, or 0.56% to 31,767.72.
On the BSE, 89,000 shares were traded in the counter so far, compared with average daily volumes of 1.51 lakh shares in the past one quarter. The stock had hit a high of Rs 559 and a low of Rs 535 so far during the day. The stock hit a record high of Rs 592.70 on 5 September 2017. The stock hit a record low of Rs 116.10 on 5 December 2016.
The stock had underperformed the market over the past one month till 5 October 2017, falling 8.83% compared with 0.22% decline in the Sensex. The scrip had outperformed the market in past one quarter, rising 33.40% as against Sensex's 0.74% rise. The scrip had outperformed the market in past one year, rising 237.91% as against Sensex's 12.40% rise.
The large-cap company has equity capital of Rs 97.96 crore. Face value per share is Rs 2.
Future Retail said that its board approved the acquisition of entire equity share capital of Hypercity Retail (India) (HRIL) from its existing shareholders (the sellers) for part cash and part share consideration aggregating up to Rs 655 crore.
Accordingly, the board of directors has also approved to allot upto 93.10 lakh equity shares of Rs 2 each fully paid up, collectively to the sellers (in proportion to their existing shareholding in HRIL) at a premium of Rs 535 per equity share on a preferential basis, aggregating to Rs 500 crore and discharge part of the consideration by way of cash upto an amount of Rs 155 crore. Consequent to acquisition, HRIL will become a wholly-owned subsidiary of Future Retail.
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Future Retail will hold extraordinary general meeting of its shareholders on 3 November 2017 for seeking their approval for the above issue of shares.
Shares of Shoppers Stop advanced 2.92% to Rs 521.95. Shoppers Stop said after market hours yesterday, 5 October 2017, that its board approved selling the company's entire stake of 7.71 crore equity shares, or 51.09% equity, of HRIL to Future Retail. The enterprise value of HRIL is Rs 911 crore.
Future Retail's net profit surged 109.6% to Rs 147.85 crore on 18.2% growth in net sales to Rs 4704.93 crore in Q1 June 2017 over Q1 June 2016.
Future Retail is primarily engaged in the business of multi-brand retail trade.
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