Companies

Future Retail gains nearly 10% following Delhi Court order on Future-Reliance deal

Our Bureau Mumbai | Updated on February 09, 2021 Published on February 09, 2021

Future Retail was not party to Aug 22, 2019 Shareholders Agreement executed between Amazon, Future Coupons Pvt Ltd and promoters of Future Retail, under which arbitration was initiated by Amazon in Singapore: Judges

The shares of Future Retail gained significantly on Tuesday after a Delhi Court stayed the status quo order passed by a single judge in the case related to the dispute between Amazon and Future Retail.

At 1:23 pm, Future Retail was trading at ₹80.50 on the BSE, up ₹7.30 or 9.97 per cent.

Also read: Delhi HC stays single judge’s status quo order on Future-Reliance deal

It opened at ₹80.50 against the previous close of ₹73.20. It hit an intraday high of ₹80.50 and an intraday low of ₹78.15.

On the NSE, it was trading at ₹80.45, up ₹7.25 or 9.90 per cent.

A Delhi High Court Division Bench on Monday stayed the Single Judge Bench order directing ‘status quo’ of Future Retail Ltd-Reliance deal.

Chief Justice DN Patel and Justice Jyoti Singh directed the stay order stating that the prima facie reason was that Future Retail was not a party to the August 22, 2019 Shareholders Agreement executed between Amazon, Future Coupons Private Limited and the promoters of Future Retail, under which arbitration was initiated by Amazon in Singapore.

Amazon was not a party to the deal between FRL and Reliance Retail. The deals “are different” and “therefore, the group of companies doctrine cannot be invoked”, as per the order.

The ruling came as a relief for Future Retail whose ₹25,000-crore deal with Reliance Retail was getting delayed by the status quo order.

The shares of Reliance Industries Ltd also recorded marginal gains. RIL was trading at ₹1,979.95 on the BSE, up ₹28.45 or 1.46 per cent. It opened at ₹1,967.70 against the previous close of ₹1951.50.

Also read: Insider trading case: Kishore Biyani moves SAT against SEBI ban

It recorded an intraday high of ₹1,990.00 and an intraday low of ₹1,960.00.

On the NSE, it was trading at ₹1,979.85, up ₹28.40 or 1.46 per cent.

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Published on February 09, 2021
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