Today we are telling you about a stock which has lost almost 93% in this year 2022 so far. The stock has fallen from Rs 53 to Rs 3.20 in YTD this year.
We are talking about the shares of Future Retail share, a company of Future Group. Actually, the company running in bankruptcy process is in constant controversy. Due to this the stock has suffered a lot.
1 lakh of investors reduced to 6 thousand
Let us inform that the share of Future Retail was trading at Rs.53 on NSE on January 6, 2022. Now it has fallen by 93% to Rs 3.20 by 8th December. That is, any investor who would have invested Rs 1 lakh in this stock at the beginning of this year, his one lakh reduced to just Rs 6,037. Let us tell you that this share of Future Group has fallen continuously this year. This has caused huge losses to those shareholders who have maintained their investments till now.
What is the reason for the stock fall?
This debt-ridden company has been in constant controversies for the last few years. Future Retail is in an ongoing dispute with Amazon and has not paid Rs 5,322.32 crore to its lenders, among other things. In March, the BoI claimed the assets of FRL through a public notice. Let us tell you that Future Retail, a flagship firm of Kishore Biyani-led Future Group, is now battling with the insolvency process filed by its lenders through the “National Company Law Tribunal”. The company’s top management includes Kishore Biyani, Rakesh Biyani, Rahul Garg, Ravindra Dhariwal, Gagan Singh and Jacob Mathew.
What is controversy?
In fact, in the year 2019, Amazon bought a 49% stake in Future Coupons, which is the holding company of Future Group, for Rs 1500 crore. Under this deal, Amazon also got the right to buy a stake in Future Retail within 3 to 10 years. But in 2020, Future Group announced the sale of its retail, wholesale and logistics business to Mukesh Ambani’s Reliance Retail for Rs 24,713 crore. After this, a dispute started between Amazon, Future Group and Reliance Retail.
