Future Group outstanding bonds trade as high as 50% as Amazon tussle over RIL deal intensifies

MUMBAI: Outstanding bonds of the Future Group traded at yields as high as 50% this week, pointing to mounting investor concerns over the fate of the deal with Reliance Industries NSE -0.52 % in the aftermath of Amazon’s objections to the acquisition.

Kotak Mahindra Asset Management Company has sold a part of its holdings in Future Lifestyles Fashions (FLFL) in the past three days at yields in the range of 35-50%. This suggests that the bonds were sold at a 25 percent discount to the face value. Before the crisis hit the lifestyle company, yields were traded in the range of 10-11%, dealers said.