InvestorQ : Why have stocks of the Future Group like Future Consumer, Future Market Networks and Future retail doubled in the last one month?
Archita Jajjoo made post

Why have stocks of the Future Group like Future Consumer, Future Market Networks and Future retail doubled in the last one month?

Answer
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Rashi Mehra answered.
3 months ago


Most of the Future Group stocks like Future Consumer, Future Retail and Future Market Networks have nearly doubled in the last 1 month. Future Retail surged 94%, Future Market Networks soared 104% and Future Enterprises rallied 88% in the last one month after it was announced that Reliance Industries could take a controlling stake in Future group.

It had been speculated for some time now but there seems to be near confirmation that Reliance Industries may be closing in on a deal to acquire stakes in some units of the Future Group. While Reliance Retail already has a portfolio of 28 million SFT of retail space, the deal with Future Group will add another 15 million SFT to its overall retail store portfolio.

For the Future group, this is an opportunity to get out of the debt trap and also out of the credit watch list that rating agencies have placed them under. Future group had already defaulted on some of its payments and the deal gives them legitimacy and trust in the market that the worst should be behind. That explains the surge in stock prices.

But the real reason why the markets are enthused is the larger synergy benefits that the Future group could derive from the proposed merger with the Reliance group. RIL has set up a robust digital franchise via Jio Platforms and Future group gets the opportunity to ride this platform and be future ready. It will be a big relief for the Future group.