January 21, 2021 12:39:38 pm
Shares of Reliance Industries (RIL) rose over 3 per cent during the late morning deals on Thursday after the oil-to-telecom behemoth received a go-ahead from the Securities and Exchange Board of India (SEBI) for its deal with Future Group.
The RIL stock climbed as much as 3.07 per cent to Rs 2118.00 apiece on the BSE, while the National Stock Exchange (NSE), the scrip rose 3.08 per cent to Rs 2,118.00 per share.
So far in the intraday session over 9.35 lakh shares were traded on the BSE, while 1.07 crore shares exchanged hands on NSE, data from the respective stock exchanges showed.
Shares of Future Retail too were locked in the 5 per cent upper circuit on both the exchanges. On the BSE it was frozen at Rs 81.35, while on NSE, it was locked at Rs 80.65.
In August last year, Mukesh Ambani’s RIL had agreed to acquire the retail business of Kishore Biyani-led Future Group in a mega-deal involving the consideration of Rs 24,713 crore. After Future’s agreement with RIL, Amazon said the deal was a violation of a non-compete clause and a right-of-first-refusal pact it had signed with the Future Group. The deal also required Future Group to inform Amazon before entering into any sale agreement with third parties.
On its part, the Future Group said that it had not sold any stake in the company, and was merely selling its assets and had therefore not violated any terms of the contract. Along these lines, Amazon also sent a letter to the SEBI, the Bombay Stock Exchange and the NSE asking them not to approve the Future-Reliance deal as there was an interim stay order on the same.
The market regulator gave its nod to the deal on Wednesday and noted that, “Company shall ensure that the shares of the transferee entity issued in lieu of the locked-in shares of the transferor entities is subjected to lock-in for the remaining period post scheme.”
“Company shall ensure that proceedings pending before SEBI against the entities part of the promoter/promoter group or are directors of the companies involved in the scheme, should be highlighted in the scheme document filed before National Company Law Tribunal (NCLT),” it further added in the letter. Click here to read the complete letter
The approval comes a month after Amazon asked SEBI to suspend its review of the Rs 24,713 crore deal and not grant a no-objection certification on the ground that its challenge to the agreement was before the Delhi High Court.
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