The share price of Reliance Industries Ltd (RIL) rallied more than 2 percent in early trade on Thursday after the market regulator Securities and Exchange Board (SEBI) approved its deal with Future Group. The shares of the Kishore Biyani-led Future Group companies were also trading higher, hitting 5 percent upper circuit.
Biyani had entered into a Rs 24,713 crore deal with Reliance Retail in August 2020. Under the agreement, Future Group would sell its retail, wholesale, logistics and warehouse businesses to Reliance Retail Ventures (RRVL).
Future Group-Reliance deal gets Sebi nod
74.2 percent of the business value of the Future Enterprises Limited post amalgamation of all the Transferor companies is getting transferred to Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited and these two companies would not be seeking listing post the scheme of arrangement.
In its letter of approval, the regulator listed a number of conditions in accordance with the Composite Scheme of Arrangement and also referred to the apprehensions raised by Amazon.
“Company shall ensure that the shares of the transferee entity issued in lieu of the locked-in shares of the transferor entities are subjected to lock-in for the remaining period post scheme," the regulator said.
The share price of Reliance Industries rose as much as 2.69 percent to Rs 2,110.15 apiece on the BSE. At 10:05 am, the shares were trading 2.44 percent higher at Rs 2,104.90 as compared to a 0.57 percent gain in the benchmark Sensex.
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