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Shares with differential voting rights (DVRs) of Future Retail were locked in upper circuit for fourth straight day, up 10% at Rs 86.90 on the NSE, after its board on Monday, May 4, 2015, approved the consolidation and realignment of its retail operations with Bharti Retail.
The stock is trading at its 52-week high and has zoomed 75% in the past four trading sessions from Rs 49.75 on April 30. The ordinary shares of Future Retail gained 2.5%, while CNX Nifty dipped 1% during the same period.
According to scheme of arrangement, the retail business of Future Retail will be demerged into Bharti Retail and the retail infrastructure business of Bharti will be demerged into Future Retail, Future Retail said in a statement.
In consideration of the de-merger of the retail business of Future Retail into Bharti Retail, Bharti Retail will issue 1 equity share to the equity/DVR shareholders of Future Retail for every 1 share/DVR held.
A DVR share is like an ordinary equity share, but it provides fewer voting rights to the shareholder. Companies generally compensate DVR investors with higher dividends.
Till 1020 hours, a combined 35,393 shares changed hands on the counter and there were pending buy orders for 575,236 shares on the NSE and BSE.
The stock is trading at its 52-week high and has zoomed 75% in the past four trading sessions from Rs 49.75 on April 30. The ordinary shares of Future Retail gained 2.5%, while CNX Nifty dipped 1% during the same period.
According to scheme of arrangement, the retail business of Future Retail will be demerged into Bharti Retail and the retail infrastructure business of Bharti will be demerged into Future Retail, Future Retail said in a statement.
In consideration of the de-merger of the retail business of Future Retail into Bharti Retail, Bharti Retail will issue 1 equity share to the equity/DVR shareholders of Future Retail for every 1 share/DVR held.
A DVR share is like an ordinary equity share, but it provides fewer voting rights to the shareholder. Companies generally compensate DVR investors with higher dividends.
Till 1020 hours, a combined 35,393 shares changed hands on the counter and there were pending buy orders for 575,236 shares on the NSE and BSE.
