Sunday, March 3

Future Group Denies Selling 10% Stakes Amidst Market Rumours

Indian market bolted a notch higher when a speculated news regarding World’s biggest brick and mortar, Future Group selling its 10 stakes to a leading global retailer surfaced in mid-afternoon today.

Meanwhile, within stock market to the company witnessed a gain of 5 percent. The scrip which was at 12 percent at 10:02 am rose by 6.60 percent to Rs. 60.60 on the BSE.

The speculation came amidst a clarification sought by stock exchanges into a news report that quoted Future Group founder Kishore Biyani saying, “he will sell a minority stake to the strongest global retailer” in the retail giant.” However, in the new clarifications, Future Group companies have stated that there is no decision taken in the regard.

The ongoing rumours have come in the wake of Flipkart-Walmart deal which has announced the acquisition of 77 percent stake in Flipkart for about USD 16 billion.

While commenting on the deal, Kishore Biyani said, “it is just an event of a change of ownership.” He regarded it merely an event where the ownership changed transferring from the hands of one foreign investor to another, from a financial investor to a strategic investor.

Future Groups runs India’s largest supermarket chain Big Bazaar and had announced earlier this month that it is eyeing to expand its retail business in the country which would proposedly reach Rs. 40,000 crores in 2018-19. We will touch Rs 40,000 crore by next year as a Group. Future Group. Currently, this year, we should be Rs 30,000 crore,” he had said.

Six months back, E-commerce giant Amazon too had picked a 5% stake at Shoppers Stop where the deal had aggregated at Rs. 179.26 crores on a preferential basis.

While acquisitions seem to be raining for Indian marketplace and the world alike, only times will tell if world’s biggest retailer will look forward to a stake sale in future or not.