InvestorQ : Do you see the Amazon court decision impacting the RIL stock price as well as the Future Enterprises stock?
diksha shah made post

Do you see the Amazon court decision impacting the RIL stock price as well as the Future Enterprises stock?

Answer
image
4 months ago
Follow

To be fair, the impact is already visible in the stock. The RIL stock has corrected nearly 10% from the recent peaks that it scaled so further downside risks do not look too likely. The worry on the Amazon story appears to be already in the price.

In the latest move, Amazon has written to the exchanges and also to the SEBI about the decision of the Singapore arbitrator‘s interim judgment. The order had stayed the proposed merger deal between Reliance Industries and the Future group due to ROFR not given.

Amazon has also furnished to the regulator and the exchanges a copy of the interim order of the Singapore arbitrator along with the details of the case so far. Amazon had approached the Singapore arbitrator because as an existing indirect investor in Future Enterprises via Future Coupons, Amazon had the right of first refusal.

Future group and Reliance do not appear to be too perturbed as the current rules do not permit FDI investment in multi-brand retail in India so any significant investment in Future Group would anyways not be possible for Amazon.

In the case of Future, it was more the urgency that pushed the RIL deal. Future group had entered into a deal to sell all retail and wholesale units to Reliance Retail for Rs.24,700 crore. This will give the Future group an exit from debt and room to breathe and grow.

2 Views