Future Retail drops 5% despite HC relief on pledged shares

NEW DELHI: Shares of Future Retail fell 5 per cent in Tuesday's trade even as the Bombay High Court restrained IDBI Trusteeship and others from selling the pledged shares in the company until further orders.

The court will consider the case next on May 4.

The stock dropped 5 per cent to hit a low of Rs 78.75 on BSE.


Future Retail’s share price had declined from Rs 350 on the date of the debenture trust deed to Rs 303 at the start of March due to the market collapse in the wake of the Covid-19 crisis, senior counsel Vikram Nankani and lawyer Somasekhar Sundaresan argued in the court on behalf of Future Group.

If the shares are sold in the current situation, it will cause irreparable loss to the promoters and hence the trustee should restrain from selling the pledged shares until the next date of hearing, the counsels pleaded in the court. As per the debenture trust deed, the defendants are fully secured.

Lawyers for the IDBI Trusteeship argued that it had to recover more than Rs 650 crore from the company and as per the current market value, the shares were worth not more than Rs 350 crore and hence there was no question of granting any ad-interim relief to the company at this moment.