Companies

Heritage Foods sells holding in Future Retail for ₹132 cr

Our Bureau Mumbai | Updated on December 09, 2020

The Chandrababu Naidu family-owned company held 3% in Future Retail

Heritage Foods, on Wednesday, sold its holding of about 3 per cent in Future Retail. The company said that it had sold the entire holding amounting to ₹132 crore in the open market.

In September, the company held a board meeting where it was decided to sell off its entire stake in Future Retail. “The company has disposed off its entire holdings/investment of 1,78,47,420 equity shares held in Future Retail Limited.”

Former Andhra Pradesh Chief Minister N Chandrababu Naidu and his family own Heritage Foods.

Also read: How retail raja Biyani lost his crown

In 2016, the Kishore Biyani-led Future Retail Ltd had inked a strategic deal to consolidate the retail and allied businesses of Heritage Foods through an equity transaction. Heritage Foods, at that time had received a 3.65 per cent equity in Future Retail via freshly-issued shares worth ₹295 crore in FRL.

Heritage Foods’ retail business includes the popular Heritage Fresh chain of 124 stores in the three key southern cities of Hyderabad, Bengaluru and Chennai. The stores sell a range of household items, fast-moving consumer goods (FMCG), staples and fresh fruits and vegetables.

Now, at a time when Future Retail is nearing the deal with Reliance Retail for a fire sale, Heritage Foods has sold off its stake.

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“These shares were sold through the stock exchange in the open market in various tranches and the net amount of ₹131.94 crore was received by the company,” it said.

Heritage Foods plans to use the proceeds for repayment of term loans it had availed, it added.

Published on December 09, 2020

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