Fitch Rating Agency Thumps Up Future Retail Business Sell to Reliance
Most of the businesses got worst hit during lockdown, in the last 6 months business sales has declined drastically. Big Bazaar India’s one of the most reputed retail mart finding difficulties for operational. No doubt before Covid-19 everything was fine and the revenue quarterly basis seems profitability. But what makes Future Group to sell their business to Reliance reason rising debt comes into play.
Well, Kishore Biyani was the person to make stand Indian retail chain of hypermarkets, discount department stores, and grocery stores since 2001. Biyani’s debt giving him negative feelings by India’s recent lockdown that left several non-essential businesses shut for weeks, further straining the company’s liquidity position. So, the deal has been made with Reliance Industries Limited for stake sell in Future Group which includes retail and wholesale business, logistics and warehousing business at lumpsum of Rs.24713 crore. The deal includes close to 1,800 stores across Future Group’s Big Bazaar, FBB, Easyday, Central, Foodhall formats that are spread in over 420 cities in India.
Reliance Industries Limited is diversifying their business from Petroleum to Digital and Retail. JIO doing a good business month and month we hope with take over in retail outlet business will do wonders in coming years. With such deal Future Group of Share will be merged in Future Enterprises Ltd like Future Consumer, Future Retail, Future Lifestyle etc. The deal has been made at mouth watering price where Amazon too is looking for the deal if something goes wrong in dealings. But as per the latest news soon record dates will be finalize soon once the cash payment has been made to Biyani owned Future Group.
However, taking this deal into consideration a rating agency named Fitch gave positive thumps up as well as updated company ratings for Future Retail of C and the rating on its 500 million dollars 5.6 per cent senior secured notes due in 20205 of C with a recovery rating of RR4 on rating watch positive. We hope from next week onwards a rise in share price is expected keeping aside bad quarterly result net loss of Rs. 478 crore with revenue drops in 18% to Rs 4492. As it was expected due to lockdown the result will fall amid.
