New Delhi: Shares of India’s Future Group companies surged as much as 20 per cent on Monday after the fair trade regulator Competition Commission of India (CCI) has suspended Amazon’s 2019 deal with the group. The antitrust agency has also imposed a Rs 202 crore penalty on the e-commerce major for certain contraventions.
Future Retail shares gained 19.92 per cent to hit the upper circuit of Rs 57.50.
Shares of Future Enterprises soared 20 per cent to touch its upper price band of Rs 11.61.
Future Consumer and Future Enterprises also rallied to hit upper circuits of Rs 8.19 and Rs 14.35 respectively.
This comes amid a bitter legal battle between Amazon and Future Group over the latter’s proposed Rs 24,713 crore deal with billionaire Mukesh Ambani-led Reliance Retail Ventures Ltd (RRVL).
Against this backdrop, Future Group had complained to the CCI.
In 2019, Amazon had entered into a deal worth Rs 2,000 crore with Future Group. As part of the deal, Amazon had acquired a 49 per cent stake in Future Coupons – the promoter firm of Future Retail – which also owns 7.3 per cent equity in listed Future Retail through convertible warrants.
In August 2020, RRVL said that it will acquire the retail and wholesale business, and the logistics and warehousing business of Future Group.
Amazon objected to Future’s deal with Reliance, saying that it was a violation of a non-compete clause and a right-of-first-refusal pact it had signed with Future.
The CCI order will potentially dent Amazon’s attempts to block the sale of Future’s retail assets to Reliance Retail. The ruling could also have far-reaching consequences for Amazon’s legal battles with Future.
Meanwhile, the domestic stock indices plunged heavily with the benchmark BSE Sensex sliding more than 1,100 points as Omicron spread rattled investors’ sentiment. The broader NSE Nifty dropped below its important psychological level of 16,650.