The Securities and Exchange Board of India has permitted the deal with some riders.
Reliance Industries Ltd (RIL) share value surged more than 3 per cent to Rs 2,119.80 apiece in a robust trade on BSE today. While shares of Future Retail Ltd and Future Enterprises Ltd hit their respective 5 per cent upper circuit of Rs 81.35 apiece and Rs 12.01 apiece, respectively. This surge in share rates was noticed following the capital market place regulator SEBI authorized the Future Group’s proposed multi-billion dollar deal with RIL. Yesterday, market place regulator gave a nod to Future Group’s scheme of arrangement and sale of assets to Reliance Industries. Moreover, Bombay Stock Exchange (BSE) also granted its ‘no adverse observation’ report to the Rs 24,713-crore deal. Last year in August, Reliance Retail Ventures Ltd (RRVL) announced plans to obtain the retail and wholesale enterprise and the logistics and warehousing enterprise from the Future Group.
Aditya Kondawar, Founder and COO, JST Investments told TheSpuzz Online that Sebi’s nod came as a dismay to Amazon who had written many letters to the market place regulator and other regulatory agencies to not grant the deal a no-objection certificate. The Securities and Exchange Board of India has permitted the deal with some riders.
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Since the middle of September 2020, RIL shares have corrected almost 12 per cent. Last year in March, RIL hit a 52-week low of Rs 867.82 apiece led by a worldwide sell-off due to COVID-19 pandemic. The Sebi’s nod to Future Retail and Reliance Industries Ltd deal has been a blessing in disguise for Future Retail investors, as AR Ramachandran, Co-founder & Trainer, Tips2Trade, told TheSpuzz Online that it enables them to have a improved exit from the stock. “A close above Rs 82.5 could lead to a rally up to Rs 94 per share and even to Rs 100 per share in the coming sessions. While Rs 70 will act as strong support for Future Retail,” he added.
Meanwhile, S&P BSE Sensex was ruling at a record higher of 50,184.01, up almost 400 points, even though the broader Nifty 50 index rallied to a fresh all-time higher of 14,753.55.
“Company shall ensure that the shares of the transferee entity issued in lieu of the locked-in shares of the transferor entities are subjected to lock-in for the remaining period post scheme,” Sebi stated. It also added that it was observed that there have been particular ongoing litigations/arbitration/legal proceedings against the draft scheme.