Future Retail dives 10%; group stocks tumble up to 16%

Future Retail dives 10%; group cos stocks tumble up to 16%

The stock went into a tailspin and tumbled 9.94% to its lower circuit of Rs 52.55 on the BSE

Representative image. Credit: iStock Photo

Shares of Future Retail Ltd on Friday tumbled almost 10 per cent after the Supreme Court ruled in favour of the US-based e-commerce giant Amazon by holding that the Singapore's Emergency Arbitrator (EA) award, restraining the Rs 24,731 crore merger deal of FRL with Reliance Retail, was valid and enforceable under Indian laws.

Following this, the stock went into a tailspin and tumbled 9.94 per cent to its lower circuit of Rs 52.55 on the BSE.

Other group stocks also dropped, with shares of Future Consumer diving 16.12 per cent during the day,

Future Supply Chain Solutions tumbling 9.99 per cent, Future Enterprises nosediving 9.98 per cent, and Future Lifestyle Fashions 9.94 per cent.

Future Consumer later closed 8.69 per cent lower.

Future Supply Chain Solutions, Future Lifestyle Fashions, and Future Enterprises also touched their lower circuit limit.

Shares of Reliance Industries Limited also dipped 2.53 per cent to Rs 2,079.20 during the day. It closed at Rs 2,089.05, a drop of 2.07 per cent.

Reliance Industries was the biggest laggard among the 30-share BSE benchmark constituents.

A bench of Justices R F Nariman also dealt with the larger question and as a proposition of law, held that an award of an EA of a foreign country is enforceable under the Indian Arbitration and Conciliation Act.

FRL had argued that an EA is not an arbitrator under Indian law as the term does not find any mention in the statute here.

Amazon.com NV Investment Holdings LLC and FRL are embroiled in a bitter legal fight over the deal and the US-based firm has sought in the apex court that the EA award was valid and enforceable.