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Future Supply shares pare early gains; close with over 2 pc loss

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Press Trust of India New Delhi
Last Updated : Dec 11 2019 | 5:10 PM IST

Shares of Future Supply Chain Solutions Ltd pared early gains and closed over 2 per cent lower on Wednesday after the Competition Commission approved acquisition of 22 per cent stake in the logistics firm by Nippon Express.

On the BSE, the scrip opened on a positive note and further climbed 6.69 per cent to Rs 534.95. However, it closed with a loss of 0.33 per cent at Rs 499.75.

On NSE, shares closed 2.63 per cent lower at Rs 486. During the day, it had risen 5.98 per cent to Rs 529.

The Competition Commission of India (CCI) in a tweet on Tuesday said it "approves acquisition by Nippon Express (South Asia & Oceania) Pte Ltd of approximately 22 per cent of the total issued and paid up share capital of the Future Supply Chain Solutions Limited".

The firm had in September said that as part of this transaction, Future Supply Chain Solutions Ltd (FSC) will issue 37,89,350 shares to Nippon Express at a price of Rs 664 per share (22 per cent premium to the current market price).

"Through this primary issue Nippon Express will hold 8.6 per cent stake on a fully diluted basis and FSC will raise around Rs 252 crore for funding its near-term growth plans," the company had said in a regulatory filing.

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Further, Nippon Express had informed that it had entered into a share purchase agreement with institutional shareholder(s) of FSC to acquire 58,63,475 shares representing 14.6 per cent of existing share capital, it added.

Both these transactions will result in Nippon Express acquiring a 22 per cent stake in FSC (on a post money, fully diluted basis), it had said.

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First Published: Dec 11 2019 | 5:10 PM IST

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