Shares of Kishore Biyani-led Future Retail Ltd have lost over 73% in the last one month amid the ongoing market selloff due to the coronavirus pandemic, worsening the liquidity crisis at the Future Group which is already reeling under huge debt pressure.
According to various media reports, the massive drop in share value of the Future Group firms has resulted in lenders seeking more collateral against Kishore Biyani’s pledged shares, making the company look for capital to tide over the debt issues.
Last week, Future Retail said that certain lenders who held NCDs (non-convertible debentures) through IDBI Trusteeship Services Ltd invoked promoter pledged shares worth 8%.
Apart from Future Retail, shares of Future Enterprises, Future Lifestyle Fashions and Future Supply Chain Solutions have lost 55-75% of their value since the start of 2020.
A media report mentioned last week that Future Group promotor Kishore Biyani was in talks with Azim Premji-owned Premji Invest, among other investors, to sell a significant amount of his stake in Future Retail to infuse funds. However, the company later dismissed the report.
In a statement to stock exchanges, the Future Group said: “With regard to stake sale by promoters, we wish to clarify that at present there is no such activities, which is in knowledge of the company.”
“Further, with regard to fund-raising plans, the management does consider various options with regard to its funds planning at its various strategic meetings, however, so far no concrete proposal has been brought before the Board for consideration,” it added.
Future Retail has 1,800 stores in over 270 cities across India. The Future Group owns brands such as Big Bazaar, Food Hall, EasyDay, FBB, among others.
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