GulfHindi English Desk: Future Group’s department, Future Retail, has proposed a bid for its acquisition that has left the company’s Indian lenders unsatisfied. According to Business Standard, lenders have urged the company with the highest bidding amount to revise their proposal. On the other hand, SpaceMantra has placed the highest bid to acquire Future Retail, which lenders have not accepted.
In comparison to the lenders’ claims of Rs 19,400 crore against Future Retail, SpaceMantra has placed a bid of Rs 550 crore. This means that if this bid is accepted, lenders will have to bear a hefty 97% reduction in their recovery. In other words, lenders will only receive 3% of their money.
Lenders have requested SpaceMantra to revise their proposal, as they are emphasizing that their recovery will be less than 3% according to the current bid, which is unacceptable to them.
Currently, Future Retail’s shares are trading at around Rs 3 on the BSE, which is significantly lower compared to Rs 645 in November 2017. This indicates a decline of over 99% in the share price so far.
Important information table:
Lenders’ claimed amount | Current bid | Percentage of claimed amount
Rs 21,000 crore | Rs 550 crore| 3%
en.gulfhindi.com News Summary
👉The lenders of Future Retail are not satisfied with the bid proposed by Future Group’s department for the purchase of Future Retail.
👉According to Business Standard’s report, the lenders have urged the company with the highest bid to improve their proposal.
👉SpaceMantra has placed the highest bid to acquire Future Retail, which has been rejected by the lenders.
👉The bid by SpaceMantra is worth 550 crore rupees, while the lenders have claimed 19,400 crore rupees against Future Retail.
👉If the bid is accepted, the lenders will have to bear a heavy loss of 97%.
👉The lenders have requested SpaceMantra to improve their proposal and expressed their dissatisfaction with the current bid.
👉Future Retail shares are currently trading at around 3 rupees on the BSE, significantly lower than the 645 rupees in November 2017.
👉The shares have experienced a decline of more than 99% so far.
👉The lenders claim an amount of 21,000 crore rupees, while the current bid is only 550 crore rupees, resulting in a 3% recovery for the lenders.
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