Monday, 27 August 2018

Future Retail surges 6% on report of Google, Paytm teaming up to buy 7-10% stake

Deal valuation pegged at Rs 3,500-4,000 crore, according to a report in The Economic Times.

Shares of Future Retail soared 6 percent on Monday morning as investors reacted to a report that Google and Paytm were looking to buy stake worth Rs 3,500-4,000 crore in the firm.
The stock touched an intraday high of Rs 552.00 and an intraday low of Rs 540.00.
According to a report in The Economic Times, the internet giant and e-wallet major are likely to form a consortium to buy 7-10 percent stake in Future Retail. This more puts the group in competition against Amazon, which has also reportedly submitted a term sheet to buy the same stake in the firm, the publication reported, citing sources.
Kishore Biyani of Future Group recently told the paper that a deal was likely to be closed with a foreign investor in the next two months. The fund infusion, he added, could be through primary and secondary share sale.
Also Read: Future Retail may soon join hands with a foreign investor
The company recently reported 3.56 percent rise in net profit for the June quarter at Rs 153.12 crore, against a net profit of Rs 147.85 crore in the same period a year ago. Future Retail also announced resignation of Rajan Bharti Mittal as non-executive director of the company "due to preoccupations".
In June 2018, three years after the merger, Bharti group sold more than half of its stake in Future Retail for nearly of Rs 1,697 crore through open market transactions. Bharti group entity Cedar Support Services disposed of 3.03 crore shares, amounting to 6.04 percent stake in Future Retail.
The stock has been trading flat in the past one month as well as in the past three days. At 09:20 hrs, Future Retail was quoting at Rs 545.90, up Rs 26.75, or 5.15 percent, on the BSE.
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