Abhishek Securities

  In the midst of  Reliance Retail  taking over the  Future Group , Kishore Biyani-led company is seeing some of its long-time senior executives abandoning ship. In recent weeks, Vineet Jain, CEO for North, quit the group after 17 years with the company. His southern counterpart Venkateswar Kumar, has also put in his papers, three persons familiar with the development, said. “Venkateshwar is currently serving his notice period,” said one of the persons. Kumar is also a Future Group veteran of more than 15 years with the company. Last month, Jain joined value retailer V-Mart Retail Ltd as the new chief operating officer. Aruni Mishra, business head for general merchandise at Big Bazaar, quit Future Group last month. “People are exiting as how long can you stick around in this uncertainty?” asked another senior official of Future Group who is scheduled to leave the company early next year after more than a decade. A Future Group spokesperson declined to comment on the...

  The Delhi high court on Thursday will continue hearing arguments by Future Retail Limited (FRL) and Amazon on the former’s plea seeking to restrain the US e-commerce company from approaching regulatory bodies such as the Competition Commission of India (CCI) against the retailer’s deal with Reliance's retail arm. The court has been hearing the case since last week. Both the parties to the case will continue with their submissions today. A single-judge bench of Justice Mukta Gupta on 12 November had directed all the parties to file their written submissions. On the last date of hearing, senior advocate Harish Salve appearing for FRL said the rights being claimed by Amazon are way beyond its actual legal rights. An interim order in favour of Amazon by the Singapore International Arbitration Centre (SIAC) is not binding, as it has not been decided by an Indian court, he had said. “He (Amazon) is interfering with my rights to salvage my company. FRL have not entered any agreement and...

  India's Future Retail Ltd (FRL) will go into liquidation if its deal to sell assets to  Reliance Industries  fails, the group told a Singapore arbitrator while arguing against  Amazon .com Inc's bid to scupper the deal, a legal order seen by Reuters showed. Amazon on Sunday won an injunction from a Singapore arbitrator to halt FRL's deal to sell assets to Reliance. Amazon alleged FRL had breached certain contract provisions it entered into last year in a separate deal with the U.S. firm. The dispute centres around FRL's decision in August to sell its retail, wholesale, logistics and some other businesses to Reliance for $3.38 billion, including debt. Amazon argues that a 2019 deal it had with a Future unit had clauses saying the Indian group couldn't sell its retail assets to anyone on a "restricted persons" list including any firms from Reliance chief  Mukesh Ambani 's group. The deal specified any disputes would be arbitrated under Singapore ...

  Amazon.com Inc.’s legal challenge to void Future Group’s  ₹ 24,700 crore asset sale to Reliance Industries Ltd hinges on a clause in the e-commerce giant’s 2019 investment agreement in Future Coupons Ltd that explicitly bars the  Kishore Biyani -led group from forging a pact with the Mukesh Ambani company, two people directly aware of the matter said. Amazon has hired law firm AZB Partners to pursue the case against  Future Group  at the Singapore International Arbitration Centre (SIAC), the people said, declining to be identified. “Reliance Industries’ name was specifically mentioned," said one of the two people. “This was a pre-condition for the Amazon-Future deal. As a serious competitor in the retail space globally, it was natural for Amazon to prevent Future Group from entering into any agreement with a large player such as Reliance Industries," he added. Even if a Singapore International Arbitration Centre panel only allows Amazon to seek damages from Fu...

  Reliance   NSE -3.54 %  Industries Ltd (RIL) on Thursday said it has received Rs 5,550 crore from global investment firm KKR, which has picked up 1.28 per cent stake in its retail arm. Earlier, on September 23, RIL had announced that  KKR  will make the investment in its subsidiary  Reliance Retail  Ventures Ltd (RRVL) to buy 1.28 per cent equity stake. "Reliance Retail Ventures Limited, a subsidiary of the company, today received the subscription amount of Rs 5,550 crore from Alyssum Asia Holdings II Pte. Ltd. (a unit of KKR) and allotted 81,348,479 equity shares to KKR," Reliance Industries said in a regulatory filing. The investment valued Reliance Retail, which runs grocery stores and fashion chains, at a pre-money equity value of Rs 4.21 lakh crore. This was the second investment by KKR in Reliance Industries' units. It had previously picked up a 2.32 per cent stake in the digital arm,  Jio Platforms , for Rs 11,367 crore. Reliance ...

  Kishore Biyani-led Future Retail’s Rs 24,713 crore deal to sell its retail, wholesale, logistics and warehousing units to Mukesh Ambani’s Reliance Retail and Fashionstyle, has run into legal trouble with global e-commerce giant Amazon claiming its “contractual rights” have been violated. What is the Future-Reliance deal? In August this year, Biyani’s Future Group entered into  an agreement with Reliance Retail,  a subsidiary of the umbrella Reliance Industries Limited (RIL) group, to sell its retail, wholesale, logistics and warehousing to the latter. As a part of the deal, Future Retail will sell its supermarket chain Big Bazaar, premium food supply unit Foodhall and fashion and clothes supermart Brand Factory’s retail as well as wholesale units to Reliance Retail. The Future group was under immense pressure from its lenders, led by the State Bank of India, to manage its debt, and the deal in seen as a bid by the group to cut down on the same. Before the August sale to...

  Oil-to-telecom conglomerate  Reliance Industries  is steadily working on expanding its footprint in the  retail sector.  On Tuesday, Abu Dhabi Investment Authority (ADIA) became the eighth investor in  Reliance Retail  Ventures, agreeing to pick 1.2 per cent equity stake in the company for Rs 5,512.5 crore. ADIA joins the league of Silver Lake, KKR, General Atlantic, Mubadala Investment Company, GIC, and TPG who have cumulatively invested Rs 37,710 crore for 8.48 per cent stake. Mukesh Ambani-owned  Reliance Industries  shifted gears in August this year, when it agreed to buy Kishore Biyani-promoted Future Group as going concerns on a slump sale basis for Rs 24,713 crore. The sale would include key brands like Big Bazaar, fbb, Foodhall, Easyday, Nilgiris, Central and Brand Factory. As  Reliance Retail  aggressively establishes itself, leveraging on online sales via JioMart, analysts believe incumbent players need to re-orient or s...

  Mukesh Ambani-controlled Reliance Industries said a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will inject Rs 5,512.5 crore into its retail division, becoming the latest marquee name to join a rush of global investors. The investment by ADIA in Reliance Retail Ventures Limited (RRVL) in exchange for a 1.2 percent stake values the company, India’s largest retailer, at a pre-money equity value of Rs 4.285 lakh crore. RRVL has now raised a combined Rs 37,710 crore from leading global investors such as  Silver Lak e,  KKR ,  General Atlantic ,  Mubadala ,  GIC ,  TPG  and ADIA in less than four weeks, RIL said in a statement on October 6. Mukesh Ambani, chairman and managing director of Reliance Industries, said, “We are delighted with ADIA’s current investment and continued support and hope to benefit from its strong track record of over four decades of value creation globally. The investment by ADIA is a further endorseme...

  Two more global funds Singapore’s GIC and US-based TPG together will invest Rs 7,350 crore into  Reliance Retail  Ventures Ltd (RRVL) to acquire around 1.6% stake in the company,  Reliance Industries   NSE -0.41 %  Ltd (RIL) said on Saturday. GIC will invest Rs 5,512 crore to purchase 1.22% in the holding company of  Reliance  Retail while  TPG Capital  Asia fund will pick 0.41% of stake for Rs 1,837 crore, valuing RRVL before the investment at Rs 4.28 lakh crore. The duo will take the number of international funds making a beeline to invest in the holding company of Reliance Retail to seven and the total foreign direct investment into the country’s largest retailer to nearly Rs 36,200 crore to purchase nearly 7.3% in the company. In the last three weeks or so, half-a-dozen other global funds from Middle East to the US including Silver Lake, KKR, General Atlantic, Mubadala have already announced investing billions of dollars into...