Future Retail shares sheds nearly 40% in just two sessions to touch 52-week lowhttps://indianexpress.com/article/news-archive/web/future-retail-shares-sheds-nearly-40-in-just-two-sessions-to-touch-52week-low/

Future Retail shares sheds nearly 40% in just two sessions to touch 52-week low

Shares of Future Retail lost nearly 19% in intra-day trade on Monday,which was also the record date for determining the entitlement of shareholders that would receive shares of the newly-carved-out entity — Future Lifestyle Fashions.

Shares of Future Retail lost nearly 19% in intra-day trade on Monday,which was also the record date for determining the entitlement of shareholders that would receive shares of the newly-carved-out entity — Future Lifestyle Fashions.

Investors have been selling shares of Future Retail in huge quantities as the record date approached,which is evident from the nearly 40% fall in the stock price in the last two trading sessions,which also saw the stock touching its 52-week low on Monday.

On BSE,Future Retail touched a low of R80.20 on Monday,before regaining some lost ground to close at R 89.60,down 9.13% or R9. On Friday,the shares lost 32%,falling from R146.75 to R98.60. There has been a notable spurt in trading volume too.

Future Group’s Kishore Biyani,in November last year,said that he will demerge his fashion business from Future Retail and set up a new company — Future Lifestyle Fashions – that will have a portfolio of over two dozens fashion and lifestyle brands.

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As per the proposed demerger scheme,all the shareholders (including those holding class B shares) of Future Retail would receive one share of Future Lifestyle Fashions for every three shares held in the company as on June 24.

Post the realignment,shareholders of Future Retail will hold 49.8% in Future Lifestyle Fashions,shareholders of Future Ventures India will hold 30.5% and 19.7% will be held by Future Retail as a corporate entity.

Earlier this year,Biyani had said that he expects the new fashion business entity to be listed on the bourses by June but that has not happened as yet. He had further said that he expects business of around R4,000 crore from Future Lifestyle Fashion in the first year of operations.