NEW DELHI: Future Group companies bolted higher today on reports that the countrys biggest brick-and-mortar player is considering selling at least 10 per cent stake to a global retailer.Future Enterprises raced 17.24 per cent early today to hit a high of Rs 42.50.
At 10:02 am, the scrip was up 12 per cent.
That of Future Consumer rose 6.60 per cent to Rs 60.60 on the BSE.
Future Lifestyle Fashions gained over 5 per cent.
At the time of filing this report, the stock was up 4.62 per cent.
I will sell a minority stake to the strongest global retailer, Future Group founder Kishore Biyani told ET on Wednesday without getting into specifics.
But a person in the know said Biyani has held early talks with Walmart and Amazon, the two American retail giants which will now be direct rivals in India, the report added.India doesnt allow overseas investment in multi-brand retail, but there are multiple routes to source FDI.
Amazon, for example, invested in a retail company through its investment arm, the route through which it picked up a 5 per cent stake in Shoppers Stop, analysts said.An Indian company can dilute up to 49 per cent stake to multiple FPIs.
Our strategy had taken into account that something like this (the Walmart-Flipkart deal) could happen, Biyani said.
We have to consider our position more carefully we have a lead in this country our use of technology has increased significantly, the Future Group boss said.He also explained how hes looking to shore up his companys strength as India played host to the worlds biggest e-commerce deal.