Future Enterprises gains after re-affirmation of credit rating

Source: business-standard.com

Future Enterprises (FEL) rose 3.57% to Rs 26.1 after credit rating agency, Acuite Ratings & Research, reaffirmed its ACUITE A1+ rating on commercial paper of the company.

On the BSE, 2000 shares were traded in the counter so far compared with average daily volumes of 40025 shares in the past one quarter. The stock has hit a high and a low of Rs 26.10 so far during the day.

Last week, the company has informed that Kishore Biyani, on behalf of the existing shareholders forming part of the promoter group and Future Coupons (promoters), entered into a share subscription agreement and a shareholders’ agreement with Amazon.Com NV Investment Holdings LLC (Amazon).

As part of the agreement, Amazon has been granted a call option. This call option allows Amazon to acquire all or part of the Promoters’ shareholding in Future Retail (Company), and is exercisable between the third to tenth years, in certain circumstances, subject to applicable law.

On a consolidated basis, the company reported a net loss of Rs 10.51 crore in Q1 June 2019 over a net loss of Rs 21.05 crore in Q1 June 2018. Net sales rose 5.2% to Rs 1414.73 crore in Q1 June 2019 over Q1 June 2018.

Future Retail operates some of India’s most popular retail chains that inspires trust through innovative offerings, quality products and affordable prices. Big Bazaar, the company’s flagship chain is regularly ranked among the most trusted retail brands in the country. The firm’s small store neighborhood retail chains, EasyDay and Heritage Fresh, operates closer home to customers and offers member-customers a range of services.