Updated: August 31, 2020 12:17:37 pm
Shares of Reliance Industries (RIL) climbed as much as 2.73 per cent during the early trade on Monday after the oil-to-telecom behemoth on Saturday announced that its retail-arm Reliance Retail Ventures Limited (RRVL) is acquiring the retail, wholesale, logistics and warehousing business of Future Group on a slump sale basis for Rs 24,713 crore.
The RIL stock climbed 2.73 per cent to hit an intraday high of Rs 2,174 apiece on the National Stock Exchange (NSE), while on the BSE it climbed 2.67 per cent to Rs 2,172 per share.
RIL shares had hit an all-time high of Rs 2,198.70 on BSE and Rs 2,198.80 on NSE on July 27, 2020.
However, they pared most of their gains and were trading marginally higher in the late morning deals. At 11:31 am, the RIL stock was trading at Rs 2129.60, up 0.66 per cent on the BSE, while on NSE, it was at Rs 2,128.45, up 0.58 per cent. Over 3.47 lakh shares exchanged hands on the BSE, while over 1.07 crore shares were traded on the NSE, data from the respective stock exchanges showed.
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Separately, the shares of various Future Group companies were locked in their respective upper circuits. Future Enterprises was locked in the 5 per cent upper circuit limit at Rs 21.20 on the BSE. Likewise, Future Consumer was frozen at Rs 12.05 on the BSE, up 4.97 per cent. Future Lifestyle Fashions, too was frozen 5 per cent higher at Rs 152.35 on BSE.
Future Retail was up 18.30 per cent at Rs 160.00 on the BSE at 11:52 am. It had hit its 20 per cent upper circuit at Rs 162.30 in the opening deals.
As part of the deal, the Future Group will initially undergo a reorganisation of its businesses in which the key group companies including Future Retail, Future Lifestyle Fashions, Future Consumer, Future Supply Chains and Future Market Networks will merge into Future Enterprises Limited (FEL).
Future Enterprises will subsequently sell by way of a slump sale the retail and wholesale business that includes key formats such as Big Bazaar, fbb, Foodhall, Easyday, Nilgiris, Central and Brand Factory to Reliance Retail and Fashion Lifestyle Ltd (RRFLL), a wholly-owned subsidiary of Reliance Retail Ventures Ltd (RRVL). It will also sell the logistics and warehouse business to RRVL by way of a slump sale.
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