SHAREHOLDERS OF FUTURE RETAIL, PROXY ADVISORY FIRM MOVE SEBI

MUMBAI: Shareholders of Future Retail Ltd and proxy advisory firm Ingovern Research Services have written to the markets regulator demanding immediate action to protect hundreds of thousands of Future shareholders and prevent the company from being referred to an insolvency court, which may wipe out shareholders.

More than 412,000 public shareholders own 85.69% of Future Retail, with the Kishore Biyani-led promoter group holding just 14.31% as of March 31.

While retail investors have written to the Securities and Exchange Board of India (Sebi) and the exchanges, Ingovern has separately asked Sebi to reverse Reliance Industries Ltd’s takeover of Big Bazaar stores, conduct a forensic examination of Future Retail’s finances, ensure it can repay creditors and prevent further losses to the company’s shareholders. Mint has reviewed a copy of the letters written by the investors and advisory firms to Sebi. In a surprise move in February, Reliance Industries, which initially offered to buy out Future Group’s assets for ₹24,713 crore, started to take over hundreds of Big Bazaar stores at prime locations across the country, taking away the primary revenue source of Future Retail.

Reliance took control of 950odd Big Bazaar stores, sending shares of Future Retail plummeting. Future Retail’s shares have plunged ZZ% since the Reliance takeover became public . However, the stock has been steadily declining after Amazon blocked Reliance’s takeover.