RIL shares slip 2% on takeover of Future Retail stores

Shares of Reliance Industries declined 2 per cent to hit an intraday low of Rs 2,245 on BSE after the company announced that it will take the operation of at least 200 stores of Future Retail.
 
India’s top retailer, Reliance, will take over the operation of at least 200 stores of Future Retail, which failed to make lease payments due to Reliance, two people with direct knowledge of the matter told Reuters on Saturday.
 
The stock opened a tad lower at Rs 2,247.05 against the previous close of Rs 2,283.95. With a market capitalisation of more than Rs 15,00,000 lakh crore, the shares stand lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
 
Future Retail Ltd, India’s second-largest retailer, suspended most of its online and offline operations as stores remained shut on Sunday, after rival Reliance bid to take over its flagship supermarkets for missed lease payments.
  
Reliance Industries Ltd will rebrand the Future stores after the company failed to make payments to Reliance, sources told Reuters on Saturday, closing most outlets of the popular Big Bazaar chain.
 
“Over 200 stores will transition to Reliance stores,” said one source, who asked not to be named as the details of the plan are not public.
 
In a letter seen by Reuters, Reliance offered Future employees at these stores new jobs on the same terms. “We welcome you to join our organization,” it reads.
 
According to MarketsMojo, the company has declared positive results for the last 4 consecutive quarters. The stock is trading at a discount compared to its average historical valuations and has a Fair valuation. Also, the company has high institutional holdings at 38.54 per cent.
 
Recently, Reliance Industries delivered its highest-ever quarterly consolidated net profit of Rs 18,549 crore for the October-December quarter, registering a growth of 41.58 per cent on a year-on-year basis on account of a rise in top line and one-time gains (Rs 2,872 crore) due to divesting shale gas assets in North America.