InvestorQ : What has happened to the Future group stocks like Future Retail and Future Fashions? Why are the price dipping so sharply?
Sam Eswaran made post

What has happened to the Future group stocks like Future Retail and Future Fashions? Why are the price dipping so sharply?

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swati Bakhda answered.
2 years ago
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The Covid-19 has created a new set of problems for promoters of the Future group apart from the weak consumption. It has caused many of the promoter pledged shares being sold in the market leading to the sharp correction in the stock price. Biyani has recently struck deals with the likes of Amazon and Blackstone but the pandemic and the lockdown of malls has come as a shock. Future group stocks have already lost 50-70% of their value in the last couple of months. The recent fall was because pledged shares were sold after Biyani could not bring in more collateral. In the case of Future Retail, certain lenders who held NCDs had invoked promoter pledged shares due to a default. The move was necessitated after ICRA had downgraded Future Corporate Resources, a promoter entity, to junk rating. The downgrade by ICRA left the lenders with no choice but to invoke the pledge and get back their debenture proceeds.

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