Market participants should avoid bottom fishing at the these counters and wait for a fresh trend to emerge.
With the proposed deal with Reliance falling through, investors have been dumping the shares of Future Group since Monday even as the broader market made substantial gains
The tactic is not new for Reliance. In 2020, Reliance Industries acquired 37.7% stake in textile manufacturer Alok Industries Ltd for Rs 250 cr.
FRL's offshore bondholders -- a relatively smaller part of the creditor pool -- were promised 100% payment, while local lenders were asked to take a haircut
However, Future Group's flagship firm Future Retail Ltd (FRL), which has nearly Rs 18,000 crore debt, is bound to face the corporate insolvency resolution process before NCLT
Future Supply Chain Solutions (down 20 per cent at Rs 37.30) and Future Lifestyle Fashions (down 20 per cent at Rs 29.40) also hit their respective all-time lows in intra-day trade on Monday.
Read out the top news headlines and other important topics for the day and related information in the section below.
Secured lenders get top priority in any potential recovery; Biyani stake fell across group companies as lenders seized pledged shares
A majority of 69.29 per cent of secured creditors of FRL voted against the resolution while 30.71 per cent voted in favour: Company.
Business Standard brings you the top headlines at this hour
Cite 'uncertainty over the entire proposition' for rejecting the proposal
The meetings have been vehemently opposed by US-based e-commerce giant Amazon, which is contesting FRL's deal with RRVL
In a 16-page letter to Kishore Biyani, his daughter Ashni and other promoters, Amazon has said such meetings violate Singapore tribunal's injunction on sale of retail assets to RIL
Future Retail Ltd said it has missed the due date for repayment of Rs 5,322.32 crore to lenders on account of the ongoing litigations with Amazon and other related issues
FRL said it has missed the due date for repayment of Rs 5,322.32 cr to lenders on account of the ongoing litigations with e-commerce major Amazon and other related issues
Future Retail had earlier written to RIL over the takeover of its stores, according to three people in the know
FRL also said in Thursday's stock exchange filing that Kishore Biyani, founder and CEO of Future Group, was re-appointed as executive chairman of Future Retail for three years
Future Group's 19 companies operating in retail, wholesale, logistics and warehousing assets would be consolidated into one entity, FEL, and then transferred to Reliance
Amazon Future case: Amazon is fighting a legal battle with FRL to stop the Kishore Biyani-led retailer's $3.4 billion deal with Reliance Industries Limited.
Shares of Future Supply Chain Solutions, Future Retail, Future Lifestyle Fashions, Future Consumer and Future Enterprises rose between 7% and 16%