Kishore Biyani-led Future group stocks crash 20% after Reliance calls off Rs 24,713 cr deal with Future Retail

Future Retail, Future Enterprises, Future Supply Chain Solutions, and different Future group stocks crashed as much as 20 per cent on Monday after Future Retail and Reliance Industries subsidiary Reliance Retail Ventures deal known as off, with the vast majority of lenders voting towards the takeover by the latter. RIL on Saturday mentioned its Rs 24,713-crore deal to amass Future Group’s belongings can’t be applied after secured collectors of the Kishore Biyani-led corporations voted towards the proposal.

“Presently, Future Retail stands at a pattern support of 27.85; the zone of 27.20-27.65 is a major support for the stock. Presently there are no triggers to go long here; however, if the stock bounces off from there, then fresh longs can be initiated with a SL of 27.20,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, advised Vaishnav suggested traders to keep away from this stock at present ranges and watch for no less than one technical bounce earlier than making an attempt any lengthy positions right here.

Future Supply Chain Solutions stocks have been down by 20 per cent at Rs 37.30, and Future Lifestyle Fashions stocks too tanked 20 per cent at Rs 29.40, touching their respective all-time lows in intraday commerce on Monday. Future Market Networks too crashed 20 per cent to Rs 6.60 in intraday, and Future Consumer stock worth additionally tumbled 20 per cent to Rs 3.90 on the BSE. While Future Retail share worth was locked within the 5 per cent decrease circuit at Rs 27.80.

“Fundamentally Future group stocks have been in bad shape for quite a while and hence investors should avoid buying at any levels as there seems to be no improvement in any way to be bullish on the Future group stocks,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, advised Ramachandran added that technically, Reliance industries has rallied fairly nicely over the previous 1 month and traders are suggested to ebook partial income at present ranges. “Levels close to 2500-2530 will be good to re-enter Reliance industries for higher targets of 2980-3000 in the coming months,” he mentioned.

Several listed Future Group entities – Future Retail Ltd, Future Enterprises Ltd (FEL), Future Market Networks Ltd, Future Consumer Ltd, Future Supply Chain Solutions Ltd and Future Lifestyle Fashions Ltd – of their respective regulatory filings on Saturday additionally mentioned composite Scheme of Arrangement with Reliance Group entities now cannot be applied as a result of end result of the voting. On Friday, FRL had disclosed to the exchanges that whereas greater than 75 per cent of shareholders and unsecured collectors had supported the deal with RIL, the company had did not get the requisite 75 per cent beneficial voting from secured collectors. A majority of 69.29 per cent of secured collectors of FRL had voted towards the decision, whereas 30.71 per cent had voted in favour of it.

The stock suggestions on this story are by the respective analysis analysts and brokerage companies. Financial Express Online doesn’t bear any duty for his or her funding recommendation. Capital markets investments are topic to guidelines and rules. Please seek the advice of your funding advisor earlier than investing.

Back to top button