Share prices of Future group firms rise on hopes of deal with RIL

Share prices of Future group companies went up on Thursday after group firm, Future Enterprises announced late on Wednesday night that its board of directors would meet on Saturday for a possible fund raising. The transaction may involve fund infusion by Reliance Industries into FEL and exit of global retail giant, Amazon from one of the promoter entities of the flagship, Future Retail Ltd.

While Future Retail closed 11 per cent up at Rs 130 a share, Future Enterprises stock was up 5 per cent after investors said that Reliance Industries would be taking over the struggling retail companies of Future group. According to a plan in the works, three Future group companies — Future Lifestyle Fashions Ltd, Future Supply Chain Solutions Ltd and Future Retail Ltd will be merged into Future Enterprises Ltd. RIL will invest around Rs 8,500 crore in the merged entity once the entire merger process is over.