According to a banker close to the development, the lenders have approached India’s top retail players to evaluate the possibility of a merger
Current Affairs : Banks, which have a noteworthy introduction to both Future Retail (FRL) and its advertisers, are poking the organization to go for an all-stock merger with a current retail player. The move has been assisted after its advertiser Kishore Biyani defaulted on credits in March and FRL’s offer cost fallen from its ongoing high in February.
As per a financier near the turn of events, the loan specialists have moved toward India’s top retail players to assess the chance of a merger.
“The organization may not get a decent valuation because of the falling budgetary measurements. It is additionally short in real money of around Rs 200 crore (as of December 2019). Banks have, thusly, moved toward every large player, including Reliance Retail, to see whether they are keen on getting the organization,” said a financier.
A Reliance representative declined to remark, naming it as market hypothesis. Future authorities were not accessible for input.
On Tuesday, Future Retail stock shut at Rs 77 an offer, down 5 percent — giving it a complete market valuation of Rs 4,000 crore.
Aditi Mehta 