As NCLT allows Future Enterprises to hold EGM, Group companies’ shares jump on Wednesday; Future Retail stocks up 10%

Shares of Future Group companies jumped up to 10 per cent as the National Company Law Tribunal (NCLT) on Tuesday allowed the Future Enterprises Limited group to hold an Extraordinary General Meeting (EGM) to seek shareholders' approval for the assets sale to Reliance Industries arm.

"The Company is pleased to update the stock exchanges that the National Company Law Tribunal, Mumbai Bench has passed an order, inter-alia, allowing the Company to hold meetings of its shareholders and creditors to seek approval for the Scheme. The NCL T has further rejected the intervention application filed by Amazon.

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"The order was pronounced in open court today and a copy thereof is awaited," Future Enterprises said in an exchange filing. 

Future Enterprises soared 8.5 per cent to Rs 9.7 per share and Future Lifestyle shares grew by 5 per cent to Rs 61.05 per share on the BSE intraday trade today.

Individually, Future Retail Limited were the biggest gainers among the group companies and were up around 10 per cent to trade at Rs 56.9 per share. It was followed by Future Consumer shares which gained nearly 9.5 per cent to 8.73 per share. Meanwhile, Future Supply Chain Solutions shares jumped 9 per cent and were trading at  Rs 84 per share on the BSE on the intraday basis.

According to Future Group’s exchange filing, “The National Company Law Tribunal, Mumbai Bench has passed an order, inter-alia, allowing the Company to hold meetings of its shareholders and creditors to seek approval for the Scheme.”

“NCLT has further rejected the intervention application filed by Amazon," said Future Retail in its filing, adding further, the order was pronounced in open court today and a copy thereof is awaited.

According to the PTI report, an Amazon spokesperson said, “We are yet to receive a copy of NCLT’s order and will decide our next steps thereafter."

The scheme of arrangement between Future and Reliance Retail entails the consolidation of Future Group's retail, wholesale, logistics, and warehousing assets into one entity -- Future Enterprises Ltd -- and then transferring it to Reliance Retail.

In August last year, Reliance Retail Ventures Ltd (RRVL) had said it will acquire the retail and wholesale business, and the logistics and warehousing business of Future Group for Rs 24,713 crores.

The deal has been contested by Amazon, an investor in Future Coupons that in turn is a shareholder in Future Retail Ltd.