Retail Investors of Future Retail Limited are searching for the Future Retail News everywhere. They are also coming to share market experts and Investment Consultants asking about the Future Retail News. In this article we will give you the latest developments about the company so that the Investors can make an informed decision.
The latest developments in Future Retail Limited (FRL) are not encouraging for retail investors. The company has been in a state of limbo for over a year now, ever since its proposed sale to Reliance Retail was blocked by Amazon. In April 2023, FRL was admitted to the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC). This means that the company is now under the control of a resolution professional, who is tasked with finding a buyer or liquidating the company.
In June 2023, FRL’s resolution professional invited expressions of interest (EOIs) from potential buyers. However, only one company, Space Mantra, submitted a bid. Space Mantra’s bid of ₹553 crore is significantly lower than the ₹24,713 crore that Reliance Retail had agreed to pay for FRL in 2020.
The committee of creditors (CoC) for FRL is currently considering Space Mantra’s bid. However, there are some lenders who are opposed to accepting the bid, as they believe that it is too low. The CoC has extended the deadline for voting on Space Mantra’s bid to September 30, 2023.
If the CoC does not accept Space Mantra’s bid, or if the bid is rejected by the National Company Law Tribunal (NCLT), then FRL will be liquidated. This would mean that retail investors would lose all of their investment in the company.
There is still some hope for retail investors in FRL, but it is very slim. If the CoC accepts Space Mantra’s bid and the bid is approved by the NCLT, then retail investors could get some return on their investment. However, the amount of return would be very small, as Space Mantra’s bid is significantly lower than the market value of FRL’s assets.
Even if the CoC accepts Space Mantra’s bid, there is no guarantee that the bid will be successful. The NCLT could reject the bid on a number of grounds, such as if it finds that the bid is not in the best interests of the creditors.
If the CoC does not accept Space Mantra’s bid, or if the bid is rejected by the NCLT, then retail investors will lose all of their investment in FRL.
In my view, retail investors should be prepared to lose all of their investment in FRL. The company is in a very precarious financial position, and it is unlikely that it can be saved. Even if the CoC accepts Space Mantra’s bid, retail investors are likely to get very little return on their investment.
Here are some additional thoughts on the latest developments in FRL and the outlook for retail investors:
- The fact that only one company submitted a bid for FRL in the CIRP process is a sign of the company’s weak financial position and the uncertain regulatory outlook for the retail sector in India.
- The low bid from Space Mantra suggests that there is not much interest from potential buyers in acquiring FRL.
- The CoC’s decision to extend the deadline for voting on Space Mantra’s bid suggests that there is disagreement among the lenders about whether or not to accept the bid.
- If the CoC does not accept Space Mantra’s bid, or if the bid is rejected by the NCLT, then FRL will be liquidated. This would mean that retail investors would lose all of their investment in the company.
Given the high risks involved, I would not recommend that retail investors invest in FRL at this time.
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